Are you worried about being the target of investment scammers? Well never fear, because ‘fusion cell’ protection is here – a method by which the Australian government is taking the fight against scammers to a new level.
And while the phrase might conjure up some kind of superhero comic book scenario, those who have been the victim of scams know it’s not a matter to be taken lightly.
Every year, Australians lose a combined $1 billion through scams. About half of that is lost to investment con artists.
This total is, of course, made up of many smaller amounts. For each individual victim, though, the amount is by no means trivial and the consequences can be devastating.
Many of those victims want more done to help them. Last Sunday, the Nine Network’s 60 Minutes program took aim at banks, which rarely reimburse victims despite “raking in billions of profits every year”.
Many of these scams slip “seamlessly through the bank’s security systems”. And Australian banks are steadfastly refusing to change tack. For example, Chris Sheehan, from NAB’s investigations and fraud unit, says banks shouldn’t be held responsible when scammers strike.
Not everyone agrees. From next year, all UK banks will be required to reimburse customers who have been tricked into sending money to scammers. Australian banks confronted with that prospect might start to pay closer attention to their security measures.
What is a fusion cell and how will it help?
Acknowledging at least some level of duty, Australian banks will have representatives making up part of the government’s so-called fusion cell. If you’re not familiar with the term, you’re not alone.
The Australian Competition and Consumer Commission (ACCC), which is introducing the concept, provides its own definition. “Fusion cells are time-limited task forces designed to bring together expertise from government and the private sector to take timely action to address specific, urgent problems.”
That’s a tacit admission that the problem of investment scams is one that requires immediate action. The ACCC will combine with the Australian Securities and Investments Commission (ASIC) to oversee the cell’s operations.
This week’s joint ACCC/ASIC media release says the cell will “include representatives from the banks, telecommunications industry and digital platforms”.
ACCC deputy chair Catriona Lowe acknowledged the financial and emotional devastation suffered by scam victims.
“That is why the National Anti-Scam Centre is prioritising investment scam disruption as its first fusion cell,” she said. Ms Lowe said the initiative would facilitate “timely action by finance, telecommunications and digital platforms to stop scammers”.
ASIC deputy chair Sarah Court also welcomed the announcement of the fusion cell.
“A collaborative approach that sees regulators working with each other, as well as with the private sector, is crucial to addressing this challenge,” she said.
What will this achieve?
Among the fusion cell’s aims are:
- early intervention to disrupt investment scams including stopping scammers from reaching potential victims
- removing investment scam websites from the internet
- sharing information about investment scam activity to assist the private sector to take disruption action
- providing information to the public so they can avoid investment scams
- identifying intelligence to refer to law enforcement in Australia and overseas.
The investment scam fusion cell will be set up initially for six months, with the National Anti-Scam Centre publicly reporting outcomes.
Have you been targeted by investment scammers? What do you think about introduction of fusion cell protection? Let us know what you think in the comments section below.
Also read: How scammers use psychology for internet cons
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