Scam Reports Hit New Highs: Are We Doing Enough?

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Financial Complaints Authority disclosed in its latest report that over 10,000 scams were reported last year, marking an alarming 81% surge compared with the previous reporting period. While this escalation is troubling, David Locke, chief ombudsman for the authority, noted a decline was observed in the later quarters.

"This decline in reports is heartening, but it's certainly not time for complacency," Locke emphasized. Initiatives by both the federal government and major banks have been cited as contributing factors to the reduction in scam activities.

However, Locke warns that "there is still a long way to go" in effectively addressing and mitigating scams across the board. The authority encountered over 10,000 scam-related cases, resolving 70% within 60 days, showcasing a need for faster and more efficient processes.

The ongoing fight against scams was coupled with a rise in financial distress cases. Complaints spurred by financial hardship increased by 18%, highlighting struggles with home, personal, and credit card loans. Ineffective communication and subpar handling during hardship assistance processes were frequently cited grievances.

Locke conveyed concerns regarding the financial industry’s response to these challenges, stating, "Over the past two years, consumers have faced a record level of premium growth in both car and home insurance." There remains a noticeable scarcity of adaptive measures concerning suitable resources and supportive product frameworks.

This article draws information from a recent AAP-delivered update, outlining critical elements of the Australian financial landscape over the past year. Navigating the complex web of financial fraud demands concerted efforts—from improving customer service to designing products focused on resolving grievances swiftly.

Published:Thursday, 31st Oct 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

Why Thin Savings Buffers Are Changing How Australians Borrow

02 Sep 2026: Paige Estritori

Recent consumer finance reporting has again highlighted a problem many Australians already feel in their weekly budget: savings buffers are thin, and unexpected costs are arriving faster than wages can absorb them. Car repairs, medical bills, rent gaps, utility catch-ups and small business cash flow shortages can all turn into urgent funding decisions, especially for casual workers, sole traders and households with irregular income. - read more

Why Personal Loan Rate Differences Matter for Small Borrowers

26 Aug 2026: Paige Estritori

Recent finance market reporting points to a sharper divide in Australia’s personal loan market: borrowers with stronger credit profiles and stable incomes may still find competitive offers, while applicants with patchier credit, casual income or heavier existing commitments can face higher pricing, tighter limits or more conditions. For Australians considering small loans, that gap matters more than the headline rate. - read more

What New BNPL Credit Rules Mean for Australians Considering Small Loans

19 Aug 2026: Paige Estritori

Buy now pay later has shifted from a simple checkout convenience to a more formal part of Australia’s consumer credit landscape. Since the newer regulatory framework began applying, providers have faced clearer expectations around licensing, suitability checks, complaints handling and support for customers who fall behind. For everyday borrowers, this matters because BNPL, small personal loans and other short-term finance products often compete for the same household budget. - read more

What the RBA Rate Hold Means for Small Loan Borrowers

12 Aug 2026: Paige Estritori

Australia’s latest interest rate pause gives borrowers a little breathing space, but it should not be mistaken for a drop in loan costs. After months of pressure from inflation, rents, insurance, groceries and utilities, the Reserve Bank’s decision to keep the cash rate steady leaves many households and small business owners still managing repayments shaped by earlier increases. - read more

Fast Cash Pressure Is Creating New Loan Scam Risks

04 Aug 2026: Paige Estritori

Australians searching for quick finance are being urged to slow down before responding to online loan offers, as scam activity continues to target people under cost-of-living pressure. The warning is especially relevant for borrowers who need urgent money for bills, car repairs, medical costs, rent gaps or short-term business cash flow. - read more

What ASIC’s Hardship Focus Means for Everyday Borrowers

28 Jul 2026: Paige Estritori

Australia’s credit regulator has kept the spotlight on how lenders respond when borrowers fall into financial hardship, a theme that matters directly to households and small business operators using small loans to manage short-term pressure. The message is simple: hardship support should be accessible, practical and clearly explained, not buried behind confusing processes or repeated requests for the same information. - read more

What ASIC’s Private Credit Alarm Means for Small Borrowers

21 Jul 2026: Paige Estritori

Australia’s corporate regulator has renewed attention on private credit, warning that a fast-growing part of the lending market is now facing a tougher test. Private credit generally refers to loans arranged outside the traditional banking system, often through funds, investment managers or specialist lenders. While this may sound distant from everyday small loans, the health of non-bank credit can still influence how finance is priced, assessed and made available. - read more

Car Finance Fees Under Scrutiny as ASIC Flags Borrower Risks

07 Jul 2026: Paige Estritori

ASIC’s latest review of the motor vehicle finance sector is a timely reminder that the true cost of borrowing can sit well beyond the advertised interest rate. While the review focused on car loans, the lessons apply to many Australians considering small personal loans, short term finance or any borrowing arranged through a third party. - read more

Payday Super Set to Test Small Business Cash Flow

23 Jun 2026: Paige Estritori

Australian small business owners have a tight deadline ahead as Payday Super begins on 1 July 2026, shifting superannuation from a quarterly obligation to a payment made alongside wages. The reform is designed to improve transparency for employees and reduce unpaid super, but it also changes the cash flow rhythm many employers have relied on for years. - read more

Click for more Finance News