The Australian Financial Complaints Authority (AFCA) has launched a public consultation on proposed rule changes aimed at strengthening its ability to respond to scams and improve industry accountability.
A key feature of the proposal is to give AFCA jurisdiction over receiving banks involved in scam-related transactions.
According to Scamwatch and partner agencies, Australians reported $2.03 billion in scam losses in 2024 — a 25.9% decrease from the previous year, with nearly 495,000 scam reports lodged. While the decline is encouraging, the sustained volume of scams highlights the continued need for stronger protections and oversight.
The consultation runs from May 19 to June 13 and follows a recent amendment to AFCA’s authorisation conditions by the federal government.
A major proposed change would allow AFCA to investigate complaints that involve banks receiving funds from scam victims, including those that pass through mule accounts.
“This amendment is a significant step forward in ensuring that all parties involved in the movement of scam funds are subject to appropriate scrutiny,” said June Smith (pictured), deputy chief ombudsman. “It promotes fairness, transparency, and accountability of all banking participants in the transaction chain.”
This shift supports the government’s broader goal of lifting industry standards and strengthening the response to financial scams.
Other proposed changes include naming non-compliant firms and reforming representative conduct.
In addition to expanded scam jurisdiction, AFCA proposes a number of other rule amendments, including:
Smith said AFCA worked with external consultants to make the rule changes clear and accessible.
“AFCA conducts an annual review of its rules to ensure they remain accurate and up to date. This process is essential for providing clear guidance regarding our jurisdiction and procedures,” she said.
“Engaging with stakeholders through the consultation is vital for refining our processes and ensuring we meet the evolving needs of consumers, small business and financial firms. We look forward to receiving valuable feedback that will help us enhance the AFCA scheme.”
The proposed rule changes are detailed in a consultation paper available on AFCA’s website, along with a draft version of the updated rules.
AFCA’s rules must be approved by the Australian Securities and Investments Commission (ASIC), which recently warned about scammers using “alpha tags” in text messages to impersonate the regulator, and are further clarified in the organisation’s rules and guidelines web page.
More information on how to make a submission is available on AFCA’s consultation page.
