Australians will be better protected from online, banking and telecommunications scams after new laws passed parliament.
Businesses could be fined up to $50 million if they do not maintain strong scams defences and victims will have clearer pathways to compensation.
The laws also establish a scams prevention framework that will subject banks, telecommunications companies and social media organisations to sector-specific rules on protecting Australian consumers.
These guidelines have not yet been finalised but could force tech giants to verify advertisers and prevent fake scam ads.
Meanwhile banks may have to confirm payee identities so those who send money know where their funds are going, and telecommunications companies could be required to detect and disrupt scam numbers.
Financial Services Minister Stephen Jones said these changes will make a genuine difference to all Australians' lives.
"Our laws give Australia the strongest defences against scammers and put us ahead of the world in scams prevention and protection," he said.
The laws have been welcomed by the Australian Financial Complaints Authority.
"For too long Australia has been a destination of choice for scammers," authority chief executive David Locke said.
"'Every day we see the devastating impacts of scams, with people suffering life-changing financial losses, as well as the humiliation of being tricked and the loss of their confidence and sense of security.
"This legislation is a significant step forward."
Banks will work with the government on further action after the Australian Banking Association applauded the bill's passage.
"This is a game-changer in the fight against scammers and will ensure all parts of the scams chain are held to account for their responsibilities to prevent, detect, report, disrupt and respond to scams," association chief executive Anna Bligh said.
Consumers and small business reported more than 10,000 scams in 2023/24, but the authority's annual review found a downturn in complaints during the last quarter.
The report suggested anti-scam measures from big banks and the federal government may have helped dampen numbers.
"We will continue to protect hard-working Australians from increasingly sophisticated and organised scammers," Communications Minister Michelle Rowland said.
In December, the corporate watchdog launched a landmark civil suit against HSBC Australia for failing to protect customers from scams, resulting in losses of about $23 million over four years.
