In 2021 Australians lost over $2 billion in scams, prompting Consumers Affairs Ministers to address the issue of scam prevention.

Consumer Advocates are now arguing that your bank should be held responsible for reimbursing scams.

Gerard Brody, Chief Executive Officer at Consumer Action Law Centre told Oliver Peterson on Perth Live that there is already an activity within the financial system which makes banks liable.

“For unauthorised transactions like card fraud, you might get a call from your bank to let you know there has been transactions on your account. In those circumstances you are reimbursed and what we’ve seen is that the level of fraud in that area has declined,” he told Oly.

“In instances when someone makes a transaction to a fraudster, the customer in general is held accountable and I think that is really inconsistent and unfair. I think if we shifted that liability, it would provide a powerful incentive to our banks to ensure the payment system is safe.”

Mr Brody stated the key part of their proposal is that it will create incentives for banks to invest in systems and technology to prevent these scams from occurring in the first place.

Press PLAY to hear more on how banks could be held responsible for scams