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If a scam hits your business, the obligation sits with your bank — not with you

Australia's Scams Prevention Framework puts legal duties on banks, telcos and digital platforms. Small businesses are treated as protected consumers, and from 31 March 2027 can take a scam complaint to AFCA.

2026-08-26

There is a piece of Australian law worth understanding correctly, because a lot of the coverage around it reads as though small businesses have picked up a new compliance burden. They have not. If anything, the opposite happened.

Who the obligations actually fall on

The Scams Prevention Framework places legal duties on banks, telecommunications providers and certain digital platforms — to take reasonable steps to prevent, detect, disrupt, report and respond to scams. Those are the regulated entities. If you run a cafe, a trade business or a consultancy, the framework does not hand you a new obligation to discharge.

That is worth knowing before you pay anyone to make you compliant with it.

Where small businesses sit

Under the framework a small business is treated as a protected consumer where it has its principal place of business in Australia, fewer than 100 employees, and turnover under $10 million. Most Australian small businesses meet that.

The practical consequence: from 31 March 2027, a small business meeting those criteria can make a scam complaint to the Australian Financial Complaints Authority under the framework. Regulated entities have had to be AFCA members since 1 September 2026, and the substantive obligations apply from 31 March 2027.

Being able to escalate to an external dispute resolution scheme is a materially different position from writing off a loss because your bank declined to help.

What this does not mean

Two honest limits, because overstating this would be worse than not writing it.

What to do on the day it happens, before any of this applies

The complaint pathway opens in 2027. If money leaves your account this week, the sequence still matters, and speed matters most.

Keep every record from that day. If the incident later falls within the framework, the contemporaneous detail is what a complaint rests on.

What is worth doing now

The framework changes who is accountable. It does not change the fact that the cheapest scam is the one that fails.

Nothing in the framework requires you to act before March 2027. Knowing that the accountability sits upstream — and that you have somewhere to take a complaint — is the part most business owners currently do not know.

Sources

Written by ARC Editorial, drafted and reviewed with claude-opus-5. ARC publishes these to help business owners find answers; if something here matters to your situation, a Facilitator can point you at someone who has solved it.

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