Scam-related cases surge by over 80%
There was a significant rise in complaints and a sharp increase in scam-related issues, the Australian Financial Complaints Authority (AFCA) has reported in its 2023-24 annual review.
AFCA received 104,861 complaints from consumers and small businesses during the financial year, an 8% rise compared to the previous year. One of the most concerning trends was the surge in scam-related complaints, which jumped by 81% to nearly 11,000.
Complaints related to financial difficulty also increased, up 18% from the previous year. Despite the uptick in complaints, AFCA said it has successfully resolved 104,203 cases, returning $313.9 million in compensation and refunds to affected parties.
In its recently published annual report, AFCA identified over 1,500 potential systemic issues, referring 97 to federal regulators. The authority also secured an additional $44.7 million in compensation and refunds for more than 159,000 consumers.
We’re excited to announce the release of the 2023-24 AFCA Annual Review! It highlights our work over the last year and key trends in complaints. Read more on our website: https://t.co/EgUpRjnWUS pic.twitter.com/6eFYMppKdd
— Australian Financial Complaints Authority (@AFCA_org_au) October 23, 2024
Key achievements highlighted in the review include the near-completion of a three-year program implementing recommendations from a Treasury-led independent review of AFCA, the completion of a business and IT transformation project, and updates to AFCA’s rules and operational guidelines. The authority also expanded its community outreach and stakeholder engagement efforts.
“This year has been the final year of AFCA’s current three-year strategic plan,” said John Pollaers, AFCA board chair. “During this time, it has firmly established itself as a world-class ombudsman service with a record of delivery.”
Pollaers added that AFCA is now equipped with the systems, processes, and personnel needed to move into its next phase, with a strong focus on further enhancing its services for all stakeholders.
“The 2023-24 year has been a period of change and growth for AFCA, with complaints rising above 100,000 for the first time, with scams, financial hardship and general insurance complaints handling being significant drivers,” said David Locke (pictured above), AFCA’s chief executive officer and chief ombudsman.
“As we embark on our work in 2024-25, I am invigorated by the professionalism and passion that characterise the AFCA team and board. Together, we remain resolute in our mission, prepared to meet challenges head on and continue our essential work.”
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