A Melbourne woman lost $646,035 to a romance scam. Should banks and dating apps be forced to refund victims like her? | Scams
A Melbourne woman lost $646,035 to a romance scammer encountered on the dating app Hinge, highlighting significant gaps in Australia’s current financial protections. The victim, identified as Jane, sent the funds via 41 transactions to cryptocurrency platforms after being manipulated by a man using a fake identity, according to reports on the case.
Jane, who has autism and a learning disability, matched with a man called “Joe” in May 2025. After moving their conversation to WhatsApp, Joe claimed to be a FIFO worker and promised a future involving children and a home. He eventually requested money for “emergency” work equipment, promising a 50% return on the investment.
Why did the bank refuse a refund?
ING, the bank Jane used to send the funds, declined to refund the money. The Australian Financial Complaints Authority (AFCA) sided with the bank in March, ruling that ING was “not on notice the disputed transactions were related to a scam.”
AFCA stated that the bank processed the transactions as instructed. However, lawyers for Jane argue that AFCA failed to consider if ING met its legal obligations to provide efficient, honest, and fair financial services.
How do Australia’s new anti-scam laws work?
The Albanese government passed anti-scam legislation that is scheduled to take effect on March 31, 2027. These laws will impose obligations on banks, telcos, and “key” digital platforms to prevent, detect, and disrupt scams.
Under the proposed framework, automatic reimbursements may be limited to $3,000. While a dispute resolution mechanism for larger sums has been promised, the government has not yet detailed how that process will function.
Meg Dalling, a policy expert at the Consumer Action Law Centre (Calc), says “significant gaps” remain. Dalling noted that the laws are not prescriptive enough and remain “totally reliant on industry to determine what they think is appropriate.”
What is the role of dating platforms in prevention?
Dr. Kate Gould, a neuropsychologist at Monash University, states that humans have a “basic need” for connection, making them vulnerable to interest from others. She argues that society expects dating platforms to ensure users are real people rather than criminals.
A Hinge spokesperson stated that its parent company, Match Group, invests in technologies to protect users across Tinder and OKCupid. Hinge launched “Face Check” verification in Australia in March to confirm users are real people.
What happens next for scam victims?
Victims may continue to face difficulties recovering funds until the 2027 laws are functional. A spokesperson for assistant treasurer Daniel Mulino stated the government “would not hesitate to bring additional sectors into scope where needed.”
Future outcomes for victims could depend on whether the final draft codes of the laws increase the obligations of banks to detect suspicious patterns, such as the 41 separate transactions Jane made to known cryptocurrency platforms.
Frequently Asked Questions
When will Australia’s new anti-scam laws be functional?
The laws are currently due to come into effect on March 31, 2027.
How much can victims automatically recover under the new laws?
The government is proposing automatic reimbursements of up to $3,000.
Which sectors will the new laws cover?
The laws will apply to banks, telcos, and “key” digital platforms, including social media, direct messaging services, and paid search engine advertising.
Do you believe financial institutions should be held legally responsible for failing to detect suspicious patterns in high-value transfers?