Tech sector unites to tackle scammers

*UPDATE* – 1:30pm AEST: X has signed on to the AOSC. This means that eight leading companies in the tech industry have today launched a proactive code aimed at combating scam activity in Australia. The Australian Online Scams Code (AOSC) has been signed by Discord, Google, Meta, Snap, TikTok, Twitch, X, and Yahoo as initial signatories, and is open to others to adopt as a proactive consumer protection measure. 

26 July 2024, DIGI media release – Seven leading companies in the tech industry have today announced the launch of a proactive code aimed at combating scam activity in Australia. The Australian Online Scams Code (AOSC) has been signed by Discord, Google, Meta, Snap, TikTok, Twitch and Yahoo as initial signatories, and is open to others to adopt as a proactive consumer protection measure. 

The code has been developed by the Digital Industry Group Inc. (DIGI), a non-profit industry association working on online harms, data protection, and consumer protection. The AOSC establishes immediate consumer protections and a blueprint for combatting scams in the digital industry in advance of the Government’s forthcoming reform agenda in relation to scams, where mandatory codes are intended for banking, telecommunications and digital platforms.   

On the launch of the The Australian Online Scams Code (AOSC), Sunita Bose, Managing Director, DIGI, said:

“Every story of Australians’ hard-earned savings being lost to a scammer is heartbreaking. Behind most scams is an increasingly sophisticated operation of organised crime. 

“For a scammer to be successful, they need to build an attack chain to make contact with victims, deceive them over time, and receive funds. Each organisation in that attack chain needs to be active in their defence of Australian consumers, and the Australian Online Scams Code creates a blueprint for best practice in the digital industry.”

“The Australian Online Scams Code outlines the commitments made by leading technology companies in Australia to fight scams, in a holistic response that spans blocking and takedown, advertiser verification measures and increased collaboration with Australia’s National Anti-Scam Centre.”

“This is a proactive initiative, as DIGI was in a position to work with the digital industry to put in place fast-tracked industry commitments to protect consumers today, recognising that legislative processes take time and that the intended mandatory codes for banks, telcos and digital platforms are unlikely to be in place until the end of 2025.”

According to the most recent Targeting Scams report released by the National Anti-Scam Centre, of the 2023 consumer reports of scams, 5.8% of scammers made contact with victims via an online forum – including online trading sites or professional forums – or a social media service. Text message remains the most popular contact method for scammers, comprising 36% of consumer reports. Bank transfer was the most reported payment method with $212 million in reported losses, followed by cryptocurrency at $171 million, compared to $10.4 million on credit cards.

The new code establishes a set of best practices for responding to scam activity online relevant to social media services (including those with peer-to-peer marketplaces), messaging and email services, and paid advertising services on digital platforms (including search engines). 

The code’s commitments span nine key areas:

• Blocking: Measures to detect and block suspected scams. 
• Reporting: A simple and quick route for users to report possible scams.
• Takedowns: Quick action against verified scam content and scammers. 
• Advertising: Measures to protect people from scam advertising.

→ For example, advertising commitments related to the verification or authentication of new advertisers; advertisers holding the necessary financial services licence to advertise a regulated financial service; and the screening of advertisements for suspicious content.

• Email and messaging: Specific measures to protect people from scams in emails and private messages.
• Law enforcement: Engaging with law enforcement efforts to address scams.
• Intelligence sharing: Contribute to public-private and cross-sectoral initiatives to address scams.

→ For example, these measures relate to increased intelligence sharing with the Government, the National Anti-Scam Centre (NASC), the ACCC, the ACMA, law enforcement and other industry partners to support scam identification and prevention.

• Communications: Provide information about scam risks and support counter-scam efforts.
• Future proofing: Contribute to strategy development and future proofing exercises to stay ahead of the threat.

→ For example, this includes signatories developing an internal scams strategy for improvements in counter-scam efforts over time.

The full measures signatories have committed to are outlined within the Australian Online Scams Code, which is available at digi.org.au/scams. 

For media enquiries, please email press@digi.org.au. 

About the Digital Industry Group Inc. (DIGI):

DIGI is a non-profit industry association that advocates for the digital industry in Australia. DIGI’s vision is a thriving Australian digitally-enabled economy that fosters innovation, a growing selection of digital products and services, and where online safety and privacy are protected. DIGI is a key Government partner in efforts to address online harms, data and consumer protection online and to grow the digital economy, through code development, partnerships and advocacy for effective and implementable approaches to technology policy.