AFCA, the Australian Financial Complaints Authority, is defending how it deals with victims as regulators hand it a bigger role in tackling scams. The ombudsman is under pressure after a surge in complaints last financial year, which hit record levels and slowed down responses. Those delays have fed frustration among HSBC customers who were scammed and say AFCA’s process left them worse off. Authorities are trying to rebuild trust in dispute resolution for fraud cases.
AFCA is now dealing with more complex issues, including AI-generated reports and a broader wave of misconduct across the financial sector. The volume of complaints has stretched its capacity, creating bottlenecks and raising questions about whether the scheme can meet expectations as scams keep evolving. Scam Victims Alliance has emerged as a vocal critic, arguing that some HSBC customers feel the system is stacked against them. AFCA’s expanding mandate means it must juggle higher caseloads with more sophisticated scam techniques.
Scam Victims Alliance told AFCA that some victim-survivors felt pushed by case workers to accept settlements below their actual losses, because they saw no realistic alternative. The group says that perception undermines confidence in AFCA’s independence and leaves scam-affected customers feeling abandoned by the system meant to protect them. HSBC’s separate regulatory trouble has intensified scrutiny, after the bank was ordered last month to pay $35 million for failing to shield customers from systemic fraud.
