People who have been scammed on Facebook may be able to receive compensation.

In a first-of-its-kind initiative in Australia, banks and social media platforms may soon have to pay up to compensate scam victims. The federal government has allocated $15 million towards creating a redress pathway for those who have lost money to scams without being able to resolve the issue.

Through this new system, victims will be able to seek financial compensation through a single channel, the Australian Financial Complaints Authority. This applies even if the complaint is against a regulated industry, making it easier for victims to receive compensation. This means that platforms like Facebook and Instagram, as well as banks, could be held accountable if they failed to implement sufficient measures to prevent scams.

According to the federal government, it is currently close to impossible for scam victims to receive redress from social media companies. Assistant Treasurer and Minister for Financial Services Stephen Jones explained that their new crackdown on scams will make it harder for scammers to target Australians by setting higher standards for businesses to prevent such incidents. He also added that this will provide a clear pathway for victims to seek compensation.

The Australian Financial Complaints Authority receives over 100,000 complaints every year related to financial firms, with around 11,000 of them being related to scams. This funding announcement is part of the government's Scams Prevention Framework legislation, which aims to combat the growing threat of scams in the country.

In 2023 alone, Australians lost $93.5 million to scams that took place through social media. This highlights the need for stricter measures to be put in place to protect individuals from falling victim to such fraudulent activities. The government's efforts to address this issue also extend to their WhatsApp channel, where they provide updates on breaking news, celebrities, and sports without any comments or algorithms that could compromise one's privacy.

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