Despite efforts to curb scam activity, the malicious practice has fueled a record surge in financial complaints over the past year.
On Thursday, August 1 the Australian Financial Complaints Authority (AFCA) reported that the number of disputes reaching the ombudsman in the 2023/24 financial year climbed to more than 105,000, up nine percent from the previous year with scams serving as a significant driver of this increase.
Chief Ombudsman David Locke called on industry to step up efforts in tackling scams and minimising complaints.
“We are disappointed we haven’t seen a reduction,” Locke said.
“Our view is that firms could be resolving more complaints themselves, or preventing them in the first place.”
Scam-related complaints skyrocketed by 81 per cent last financial year, reaching a staggering 10,951. This translates to an average of 913 complaints per month—nearly double the 504 monthly average from the previous year.
The rise in complaints regarding scam activity comes after it was announced that Australian banks are joining forces with industry in an attempt to crack down on scam activity and win the “war” against scammers preying on vulnerable and unsuspecting customers.
Assistant Treasurer and Minister for Financial Services Stephen Jones led a delegation to Singapore earlier this year to enhance regional cooperation in the fight against scammers.
Jones said he was keen to gather “new insights” to “continue our anti‑scam plan and keep people’s money safe”.
“Anyone with a phone or an internet connection would know that scammers are relentless in their pursuit to steal people’s money,” Jones said.
“We want Australians to keep their money safe, so we are going after these criminals and smashing their scam activity.
“This is a transnational challenge so we are working closely with our partners in New Zealand and Singapore to take the fight up to the scammers.
“I look forward to sharing the strategies that are starting to work here in Australia and bring back new insights to continue our anti‑scam plan and keep people’s money safe.”
Given scammers are constantly evolving their methods, Australian Banking Association Chief Executive Anna Bligh said “winning the war against scammers” would require a global collaboration.
“Scammers are always innovating and finding new ways to steal money. It’s critical government and industry look at the different ways jurisdictions are tackling scams and what more can be done to protect customers,” she said.
“We are making inroads here in Australia with financial losses from scams trending down and fighting scams across international borders is essential to keeping Australians safe.”
The delegation comprised members from the National Anti Scam Centre, the Australian Banking Association, the Australian Financial Crimes Exchange, the Customer Owned Banking Association, and Australian banks. The group was joined by representatives from the Government of New Zealand who met with their Singaporean counterparts and leading business executives focused on preventing scams through shared information initiatives.
-with AAP.