Scam victims to be compensated under Labor plan to fine banks and social media platforms $50m

Under the measures announced by the government, scam victims will be able to seek compensation from a telco, digital platform or a bank by taking their case to the Australian Financial Complaints Authority. Photograph: Prostock-studio/Alamy

Banks and social media companies would be fined up to $50m and be forced to pay compensation if they fail to protect customers from scams, under a crackdown proposed by the federal government.

Telecommunication companies would also be affected by the measures, after the government ignored calls to follow the UK approach where banks are solely responsible for protecting customers.