According to the Australian Financial Complaints Authority (AFCA), complaints for credit cards increased by 12 percent, while complaints for home loans decreased by 3 percent. In 2023, AFCA received over 105,000 financial complaints, which was 9 percent higher than the previous year. Complaints related to online accounts rose by 33 percent to 2,533, personal transaction account complaints increased by 19 percent to 13,635, and personal loan complaints grew by 17 percent to 7,660.
AFCA CEO and Chief Ombudsman David Locke expressed disappointment over the lack of reduction in complaints, emphasizing the importance of firms resolving complaints internally. In a separate report by TransUnion, the global suspected digital fraud rate in financial services increased by 3 percent to 4.3 percent.
The Australian Payments Network also reported an increase in the fraud rate for the fiscal year 2023, reaching 64.2 cents per $1,000 spent for the overall card fraud rate. AFCA noted instances of sophisticated scam activity in the superannuation sector and urged super fund trustees to enhance fraud protection measures.
The Albanese government introduced identity protection reforms that blocked 300,000 fraud attempts, following the Optus data breach in 2022. Attorney-General Mark Dreyfus MP highlighted the government’s commitment to enhancing cybersecurity and identity resilience strategies.
AFCA emphasized the role of lenders in addressing fraud attempts and providing timely support to individuals facing financial difficulties. Locke stressed the importance of preventing situations from escalating to dire circumstances through proactive and tailored support.
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