The Australian Financial Complaints Authority’s annual review revealed that more than 10,000 scams were reported in 2023/24, an 81% increase from the previous year. Chief Ombudsman David Locke noted a downturn in the last quarter, attributed to anti-scam initiatives launched by the government and banks. However, there is still work to be done to combat scams, despite progress being made. Over 70% of complaints regarding being scammed out of money were resolved within 60 days.
The review also highlighted a rise in complaints related to financial difficulties, with an 18% increase in complaints stemming from concerns about home, personal, and credit card lending. Many of these complaints were due to poor treatment or ineffective communication during the hardship application process. Locke emphasized the need for urgent improvements in this area, as consumers continue to face challenges with premium growth in car and home insurance over the past few years.
Despite efforts to combat scams and improve communication during the hardship application process, consumer dissatisfaction remains high. Lock expressed disappointment in the lack of action in areas such as appropriate resourcing, product design, and adoption of a resolution mindset within the financial industry. The authority continues to work towards addressing these issues and advocating for better consumer protection and support.
As the number of reported scams continues to increase, it is evident that more needs to be done to protect consumers from falling victim to fraudulent activities. While progress has been made in resolving complaints related to scams and financial difficulties, there is still a long way to go in addressing underlying issues in the financial industry. The authority remains committed to advocating for consumer rights and pushing for improvements in how financial institutions handle complaints and provide support to those in need.
In conclusion, the rise in reported scams and financial difficulties in Australia indicates the need for continued efforts to protect consumers and improve industry practices. Despite some progress being made in resolving complaints and implementing anti-scam initiatives, more work is required to address communication issues during hardship applications and consumer dissatisfaction with insurance premiums. The Australian Financial Complaints Authority plays a crucial role in advocating for consumer rights and pushing for improvements in the financial services sector to ensure better protection and support for all Australians.
