By Heather Gray
Lead Ombudsman, Superannuation
 

While the Australian Financial Complaints Authority (AFCA) received nearly 11,000 complaints in relation to scams last financial year, less than 20 came from superannuation fund members. That’s pleasing – but not a reason for complacency by trustees or fund members. 

Scam-related complaints in super may be small in number but the average loss claimed was $88,736 and ranged as high as $344,000-plus – a potentially life-changing sum.

In addition, in line with the trend in banking, we are starting to see instances of more sophisticated scam activity in superannuation.

That’s why we believe now is the time for super funds, and fund members, to ensure they are doing all they can to keep themselves safe from scammers.

AFCA’s view is that trustees have a window of opportunity to act so we don’t see the sorts of issues we have seen elsewhere. We are urging them to review the processes they have in place to help shield members from fraud, and to ward off any escalation of activity by scammers.

Funds that haven’t done so already should consider using technology such as multi-factor authentication (MFA) to reduce the risk that fund members might lose money from their super accounts through scams and other fraud.

There are also things fund members can do to help keep their superannuation safe.

In the complaints we saw in 2023-24, in some cases a person known to the fund member used their personal information to take money, while in other cases a third party had acquired their identification details in another way. Sometimes fraud was committed by an adviser engaged by the fund member in good faith.
 
Based on what we’ve seen in complaints, here’s our advice for fund members:

• Always keep identification details and passwords private and secure
• Take advantage of security features such as multi-factor authentication where your fund offers these
• Read all correspondence from your fund, not just your annual statements but all letters and emails as well
• Review all documents prepared by advisers, such as rollover requests
• Never sign a partially completed form
• Regularly check your super accounts. If you notice anything wrong with your superannuation account, contact your fund immediately. 

If you don’t receive the help you expected, or you believe your fund has not met its responsibilities to you, remember that you have the right to complain to your fund.

If you remain unhappy with the fund’s response, you can come to AFCA as an independent ‘umpire’. Our service is free for consumers and we’ll work with you and the fund to try to resolve the issue. If agreement can’t be reached, one of our ombudsmen can review the case and make a decision.