The Australian Financial Complaints Authority (AFCA) has been handed responsibility for handling scam-related disputes across banking, telecommunications, and digital platforms, following formal government confirmation that AFCA will serve as the sole external dispute resolution body under the Scams Prevention Framework (SPF). The appointment positions AFCA as the entry point for consumers who are unable to resolve scam complaints through internal channels.
Modern scams often involve multiple organisations across different sectors. The SPF’s multi-party EDR model reflects that reality, with AFCA serving as the single point of contact for consumers who have not been able to resolve their scam complaint through internal dispute resolution. AFCA acting chief executive officer and chief ombudsman Dr. June Smith acknowledged the scale of what lies ahead. “We welcome the government’s announcement and the confidence it has placed in us to act as the external dispute resolution scheme under the Scams Prevention Framework. We have significant experience handling complex complaints at scale, and we’ll be using that experience to build an effective and accessible service. We recognise the size of the task and look forward to working closely with all stakeholders to deliver a robust, fair, and efficient dispute resolution process,” Smith said.
AFCA’s authorisation takes effect from July 1, 2026. From that date, membership applications open for newly designated organisations. Banks, telecommunications providers, and digital platforms falling under the SPF’s scope must hold AFCA membership by Sept. 1, 2026. However, AFCA will not begin accepting scam complaints under the new framework until March 31, 2027, when the bulk of SPF obligations come into force. Sector-specific guidance for newly designated members is expected to be published on the AFCA website from mid-June 2026, with early applications encouraged. New member firms will be joining AFCA under the expanded framework, including those currently with a different external dispute resolution scheme and those unfamiliar with EDR or mandatory internal dispute resolution processes. AFCA has said it will work with government, regulators, consumer groups, and the industries involved to support the delivery of the new scheme.
To lead the build-out of the scams EDR function, AFCA appointed David Lacey as its inaugural chief scams officer. The role was created specifically to oversee the establishment of the new scheme. “Scams are one of the most significant issues affecting consumers today. They are increasingly sophisticated and they leave people facing devastating financial and emotional consequences. We recognise the complex nature of modern scams and the need for fair outcomes for victims and the organisations involved. We look forward to welcoming new members to AFCA,” Lacey said. AFCA’s existing experience in this area is substantial. In the 2023-24 financial year, the authority resolved 10,400 scam-related complaints at an average resolution time of 57 days.
The SPF passed the Australian Parliament on Feb. 13, 2025. The legislation places obligations on businesses in designated sectors to put systems and processes in place that prevent, detect, disrupt, report on, and respond to scam activity. Non-compliance carries consequences under the bill. Three regulators share oversight responsibilities under the framework. The Australian Competition and Consumer Commission (ACCC) holds the general regulatory role, while the Australian Securities and Investments Commission (ASIC) and the Australian Communications and Media Authority (ACMA) carry responsibilities within their respective sectors.
Supporting the legislation are Scams Prevention Framework Rules, which clarify obligations and liability, and mandatory sector codes that introduce more granular requirements for specific industries. A mandatory intelligence-sharing mechanism will also require timely reporting and cooperation across industry and government. On May 28, 2026, the government designated banks, telecommunications companies, and key digital platforms as the first sectors subject to the SPF. Draft rules and sector codes were released for public consultation at the same time, with submissions closing June 25, 2026.
A government paper released alongside the designations proposed that scam victims with verified losses below $3,000 be automatically reimbursed, with the intention of reducing investigation costs and accelerating resolution. Assistant Treasurer Daniel Mulino framed the designations as a shift away from industry self-regulation. “Scams are costing Australians billions, and the human impact is even greater. That’s why we’re moving beyond voluntary action to a stronger, coordinated approach across the economy,” Mulino said.
The SPF’s commencement does not alter existing avenues for scam-related complaints in the financial services sector. Consumers and small businesses can continue to lodge complaints with AFCA against financial services firms through current processes. AFCA’s standard guidance applies: complainants are advised to raise matters with the relevant firm first and to approach AFCA only if the complaint is not resolved at that stage. AFCA has said it will engage with government, regulators, consumer groups, and industry participants throughout the lead-up to the March 2027 commencement to contribute to the finalisation of sector codes and support firms in meeting their obligations.
