Given the global nature of the problem, more partnerships between countries and stakeholders will be needed to tackle the problem at source
Regulators look to enhance ongoing consumer protection efforts: The Australian Communications and Media Authority (ACMA) and New Zealand’s Department of Internal Affairs (DIA) have signed a new Memorandum of Understanding (MoU) to further promote strategic engagement, facilitate information exchange and support compliance and enforcement outcomes. The two regulators have been long-term partners in addressing unlawful communications and they expect the latest agreement will take their cooperation “to a new level”. In the DIA’s view, sharing intelligence, techniques and tools for tackling spam, phishing and malware reflects its close working relationship with ACMA. The MoU follows the Australian regulator entering into similar arrangements with its Canadian and US counterparts, while all four agencies are core members of the Unsolicited Communications Enforcement Network.
Financial losses from unlawful spam or scams are mounting: According to ACMA, “just about everyone with a mobile phone or email address” will be aware of this problem, pointing to the recent ‘FluBot’ malware scam that affected both Australians and New Zealanders. The regulator’s own research found that 98% of Australian adults received unsolicited mobile communications in 2021. Online and phone scams have also seen a significant rise in other markets, with the number of fraud schemes relating to banking, delivery and vaccinations increasingly sharply since the start of the Covid-19 pandemic. Ofcom estimates that 45 million people in the UK were targeted by scam calls and texts in the summer of 2021 alone. With many individuals following scammers’ instructions, we estimated that in 2020 consumers in Australia, the UK and the US lost a combined £1.2bn – a rise of 47% in Australia and 30% in the US compared to the previous year.
Policymakers know interventions are needed but sectors must collaborate: Scams are a real threat to consumer well being and regulators around the world face similar challenges when it comes to reducing their volume and impact. Many are actively seeking international partnerships as a mutually-beneficial way of tackling this growing problem and protecting end users. Aside from inter-regulator cooperation, industries will need to work with policymakers and each other to counter unlawful communications. As almost all scams involve at least two of the banking, technology and telecoms sectors, greater collaboration between firms and regulators is required to stop fraud incidents at source. In particular, tech companies (which both enable and prevent scams) should look to cooperate closely with financial authorities given that cryptocurrency is considered a new frontline for this type of illegal activity.
