AFCA Annual Review for 2023-24: Record 104,861 Complaints, 10% Scam-Related

The Australian Financial Complaints Authority (AFCA) has released its Annual Review, reporting a record 104,861 complaints from consumers and small businesses between 1 July 2023 and 30 June 2024 (2023-24 financial year), marking an 8% increase from the previous year.

One in ten of those complaints was related to scams. CEO and Chief Ombudsman David Locke highlighted that AFCA had resolved 10,440 scam-related complaints, with 70% of these cases resolved within 60 days.

Approximately 67% of scam complaints were addressed at the initial stage of the AFCA process when referred to the firms. For those that progressed to AFCA's investigation, 60% resulted in full or partial compensation.

While a surge in scam complaints was one of the most worrying trends in the past financial year, AFCA saw a welcome downward turn in the last quarter of 2023-24. 

While the surge in scam complaints was concerning, AFCA observed a decline in the last quarter of 2023-24. Locke said: "Although AFCA received on average 900 scam complaints a month in 2023-24, that tells only part of the story, because we saw much lower figures over the last three months of the year. Pleasingly this trend continued into the new financial year, with AFCA receiving an average of 500 complaints a month, significantly lower than in the same period last year."

Locke welcomed the Australian government’s Scams Prevention Framework, with strong mandatory codes of conduct. He urged banks, digital platforms, and telecommunications companies to act now to protect consumers, stating, "Much more needs to be done to reduce the operational risk associated with digital payment platforms."

Additionally, Locke called on firms to approach complaints with a resolution mindset rather than an adversarial stance with consumers, particularly in complex areas such as scams.