Regulatory change allows AFCA to examine receiving banks' role in scam transactions
The Australian Financial Complaints Authority (AFCA) has welcomed a government decision allowing it to assess the role of receiving banks in scam-related disputes.
Currently, AFCA can only investigate the actions of the complainant’s own bank, not the bank that received fraudulent funds. The new authorisation, approved by Assistant Treasurer and Minister for Financial Services Stephen Jones, will take effect in 12 months.
AFCA chief ombudsman David Locke (pictured above) said the change would provide a more comprehensive view of scam transactions.
“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,” said Locke, who added that AFCA would collaborate with industry and consumer groups to update its rules and ensure a smooth transition.
AFCA welcomes a federal government decision that will enable it to consider the actions of “receiving banks” in scam complaints, as well as the news that scam reports to government agencies fell 26 per cent last year.
— Australian Financial Complaints Authority (@AFCA_org_au) March 11, 2025
Read more: https://t.co/dGHtN3LkrM pic.twitter.com/ZHggPMmX5V
The decision follows a decline in scam losses, according to the National Anti-Scam Centre’s latest Targeting Scams Report. The report showed that scam-related financial losses reported to key agencies fell 25.9% in 2024, dropping to $2 billion. Total scam reports also decreased by 17.8%, with 494,732 cases recorded compared to 601,803 the previous year.
The findings are based on data from multiple agencies, including Scamwatch, ReportCyber, the Australian Financial Crimes Exchange, IDCARE, and the Australian Securities and Investments Commission (ASIC).
Catriona Lowe, deputy chair of the Australian Competition & Consumer Commission (ACCC), noted that while the decline in scam-related losses is encouraging, ongoing vigilance is necessary.
“While we are encouraged by the drop in reported financial losses, we acknowledge scammers are sophisticated and highly motivated criminals,” Lowe said. “We need to remain vigilant and pivot our defences to maintain this downward trajectory.”
Locke echoed this sentiment, acknowledging the positive impact of collective efforts but stressing the need for further action.
“This improvement demonstrates the positive impact of all stakeholders working together to tackle this crime,” he said. “However, the numbers remain large, with nearly 500,000 scam reports and $2 billion lost, and there is much more to be done.”
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