Scam victims are calling for a UK-style reimbursement scheme where banks pay for fraud and want proposed laws to be fast-tracked.
Under its latest crackdown on fraudsters, the Albanese government has drafted legislation that would penalise companies for failing to stop scammers getting through to consumers.
Victims would be given a clear pathway for redress if they are not at fault.
But Australians who have been scammed say the proposal doesn't go far enough and called on the government to follow the UK and make banks reimburse fraud victims.
Harriet Spring was fleeced of $1.6 million after making a term deposit transfer following the sale of her 95-year-old mother's family home.
"Without any skin in the game, without the banks feeling any pain for this, we will never change Australia being the honeypot," she said.
David Sweeney, whose father was defrauded of more than $1 million in 2015, described being left devastated by the "incredibly traumatic" experience with the banks.
Independent senator David Pocock urged the government to have the legislation passed before the end of the year, warning more people would fall prey.
"We know that when banks are on the hook, they're going to spend a lot more time and energy into ensuring that they don't happen in the first place and I think that's really the missing piece," he said.
People can have their say on Labor's draft legislation until October 4.
