Scams a ‘key driver’ behind record rise in financial complaints
The Australian Financial Complaints Authority received 105,000 complaints during the last financial year, a 9 per cent year-on-year increase.
The Australian Financial Complaints Authority (AFCA) has revealed another record for financial complaints, with a 9 per cent increase over the 2023-24 financial year.
The AFCA said in a statement on August 1 that it had received 105,454 complaints and said scams were a “key factor” behind the increase.
“While we have not seen the scale of increase we experienced a year ago, these record numbers are still too high,” said Chief Ombudsman David Locke.
Complaints increased by an alarming 34 percent in 2022-23.
“We are disappointed that we have not seen a reduction. Our view is that companies could resolve more complaints themselves or prevent them in the first place,” Locke said.
“We continue to take steps to keep pace with the growing demand for our service, but it is in everyone’s best interest that growing complaints are addressed at their source.”
Looking at complaints related solely to scams, the numbers increased even further, with an 81 percent increase over the previous period, reaching 10,951. On average, the AFCA received 913 complaints per month, compared to 504 in the previous period.
Complaints about unauthorized transactions were the most common this financial year.
“We saw scam-related complaints decline somewhat towards the end of the year, possibly reflecting recent government and industry efforts to prevent and address scams. Our hope is that this improvement will continue next year,” Locke said.
Locke also said he expected “clearer obligations” from the government regarding mandatory codes on scam reporting and response. It also noted that sophisticated fraudsters were now targeting the pensions industry.
“We urge super fund trustees to review the measures they have put in place to protect members from fraud,” Mr Locke said.
“The fact that complaints about scams and unauthorized transactions at Super are still low means there is a window of opportunity for trustees to act so that we do not experience the kind of problems seen elsewhere.”
