The Australian Financial Complaints Authority has welcomed a federal government move that will allow it to consider the conduct of “receiving banks” in scam-related disputes, after Assistant Treasurer and Minister for Financial Services Stephen Jones approved a change to the conditions of AFCA’s authorisation as the financial sector ombudsman.
At present, AFCA can only assess the actions of the customer’s own bank when a scam complaint is lodged, not the bank that received the transferred funds. The expanded remit will come into effect in 12 months, enabling the body to examine both ends of the transaction.
“This authorisation condition change means that in the future, the actions of receiving banks can be considered as part of the full chain of events in a scam,” AFCA’s Chief Ombudsman and Chief Executive, David Locke, said.
“We welcome this direction from the Government. AFCA will work with industry and consumer groups over coming months on the changes required to AFCA’s Rules to ensure a smooth transition to implement this change.”
The announcement coincides with new data from the National Anti-Scam Centre’s Targeting Scams Report indicating losses to scams fell 26 per cent in 2024, with the number of scam reports down 18 per cent.
“This improvement demonstrates the positive impact of all stakeholders working together to tackle this crime,” Mr Locke said. “However, the numbers remain large, with nearly 500,000 scam reports and $2 billion lost, and there is much more to be done.”
