As the prevalence of scams in Australia reaches alarming heights, even the top brass of the nation's financial watchdog could not be spared from the sophisticated tactics of modern fraudsters.

In a revelation that stunned many, a top executive of Australia's financial watchdog, The Australian Financial Complaints Authority (AFCA), has become the latest victim of a scam.

Justin Untersteiner, AFCA’s Chief Operating Officer, recently found himself $4000 out of pocket due to fraudulent transactions.

'I received a message from my banking app letting me know that I'd overdrawn my account by $4000,' Untersteiner told A Current Affair.

'I thought that was very strange, I went into my internet banking and found there had been four $1000 payments from an unknown provider from my account.'

Financial watchdog top executive becomes victim to a scam. Image source: Freepik.

He said he spent an hour and 15 minutes waiting to get connected to a representative from his bank to help with the issue.

'I don't think that is good enough. I think when people have been scammed, it's a really traumatic experience, they should be able to get through to the banks very quickly,' he said.

'When someone is scammed, they need responsive support, there on the spot.'

He added that banks should be putting in more effort to protect their customers from scams.

'Certainly, from our perspective, we want to see the banks doing more to prevent scams; faster implementation of initiatives and technology.'

'Scams have been such a significant issue in this country now for several years. We know that Australians are losing more than $3 billion a year.'

'I've been told when I talk to other jurisdictions around the world that Australia has been a soft and easy target, and we're seeing that.'

Untersteiner's experience is far from unique.

Fresh figures from AFCA show that the number of Aussies who have had money disappear from their accounts due to scams almost doubled from 2022 to 2023.

AFCA looked at more than 100,000 complaints last year—9000 of which were from scam victims.

AFCA, which provides independent solutions for individuals and small businesses who have a complaint about a financial product or service, has applauded the Albanese Government's efforts to strengthen protection against scams.

This includes the implementation of a National Anti-Scam Centre and a code of practice for banks and telcos to meet.

Untersteiner also praised the banking industry's development of a Scam-Safe Accord, which will establish a set of anti-scam measures for all banks to adhere to.

However, he emphasised that more needs to be done, especially as the number of complaints to the watchdog is expected to continue to grow this financial year.

He also added that the surge in complaints can be attributed to a combination of factors, including the prevalence of scams, uncertainty about liability and prevention, and increased financial hardship.

'We're seeing increased hardship at the moment as well, where people are struggling to pay their bills as they struggle with rising interest rates…cost of living, paying for groceries,' Untersteiner said.

In addition to scams, AFCA is also seeing a larger number of complaints against insurance companies relating to delays in processing insurance claims.

It is understood that Untersteiner is still waiting to hear from his bank to advise whether he will get his money back.

Key Takeaways

• The Chief Operating Officer of the financial watchdog Australian Financial Complaints Authority (AFCA) has criticised banks for their response to scams after becoming a victim himself.
• Complaints to AFCA about scams have nearly doubled from 2022 to 2023, with a record number of Australians reporting money stolen due to scams.
• The financial watchdog COO spent over an hour waiting to speak with bank representatives following unauthorized transactions on his account.
• The Albanese Government is taking steps to combat scams with initiatives like a National Anti-Scam Centre and a code of practice for banks and telcos, while the banking industry is developing a Scam-Safe Accord.

What are your thoughts on this story, members? Let us know in the comments below!

 

[BabsL]

As the prevalence of scams in Australia reaches alarming heights, even the top brass of the nation's financial watchdog could not be spared from the sophisticated tactics of modern fraudsters.

In a revelation that stunned many, a top executive of Australia's financial watchdog, The Australian Financial Complaints Authority (AFCA), has become the latest victim of a scam.

Justin Untersteiner, AFCA’s Chief Operating Officer, recently found himself $4000 out of pocket due to fraudulent transactions.

'I received a message from my banking app letting me know that I'd overdrawn my account by $4000,' Untersteiner told A Current Affair.

'I thought that was very strange, I went into my internet banking and found there had been four $1000 payments from an unknown provider from my account.'

View attachment 38960

Financial watchdog top executive becomes victim to a scam. Image source: Freepik.

He said he spent an hour and 15 minutes waiting to get connected to a representative from his bank to help with the issue.

'I don't think that is good enough. I think when people have been scammed, it's a really traumatic experience, they should be able to get through to the banks very quickly,' he said.

'When someone is scammed, they need responsive support, there on the spot.'

He added that banks should be putting in more effort to protect their customers from scams.

'Certainly, from our perspective, we want to see the banks doing more to prevent scams; faster implementation of initiatives and technology.'

'Scams have been such a significant issue in this country now for several years. We know that Australians are losing more than $3 billion a year.'

'I've been told when I talk to other jurisdictions around the world that Australia has been a soft and easy target, and we're seeing that.'

Untersteiner's experience is far from unique.

Fresh figures from AFCA show that the number of Aussies who have had money disappear from their accounts due to scams almost doubled from 2022 to 2023.

AFCA looked at more than 100,000 complaints last year—9000 of which were from scam victims.

AFCA, which provides independent solutions for individuals and small businesses who have a complaint about a financial product or service, has applauded the Albanese Government's efforts to strengthen protection against scams.

This includes the implementation of a National Anti-Scam Centre and a code of practice for banks and telcos to meet.

Untersteiner also praised the banking industry's development of a Scam-Safe Accord, which will establish a set of anti-scam measures for all banks to adhere to.

However, he emphasised that more needs to be done, especially as the number of complaints to the watchdog is expected to continue to grow this financial year.

He also added that the surge in complaints can be attributed to a combination of factors, including the prevalence of scams, uncertainty about liability and prevention, and increased financial hardship.

'We're seeing increased hardship at the moment as well, where people are struggling to pay their bills as they struggle with rising interest rates…cost of living, paying for groceries,' Untersteiner said.

In addition to scams, AFCA is also seeing a larger number of complaints against insurance companies relating to delays in processing insurance claims.

It is understood that Untersteiner is still waiting to hear from his bank to advise whether he will get his money back.

Key Takeaways

• The Chief Operating Officer of the financial watchdog Australian Financial Complaints Authority (AFCA) has criticised banks for their response to scams after becoming a victim himself.
• Complaints to AFCA about scams have nearly doubled from 2022 to 2023, with a record number of Australians reporting money stolen due to scams.
• The financial watchdog COO spent over an hour waiting to speak with bank representatives following unauthorized transactions on his account.
• The Albanese Government is taking steps to combat scams with initiatives like a National Anti-Scam Centre and a code of practice for banks and telcos, while the banking industry is developing a Scam-Safe Accord.

What are your thoughts on this story, members? Let us know in the comments below!

Delighted a watchdog bod has copped the same disgraceful 75minute wait that the rest of us suffer every day when trying to contact the bank for help! Optus takes longer and no one has good English!
75mins is the time to be stuck On Hold whilst the recording repeatedly tells you to use the online App to solve yr problem!
by every person who rings their bank or ISP for help. Friday nights can take over TWO HOURS on hold to spk w a bank person.

 

[Annna]

Delighted a watchdog bod has copped the same disgraceful 75minute wait that the rest of us suffer every day when trying to contact the bank for help! Optus takes longer and no one has good English!
75mins is the time to be stuck On Hold whilst the recording repeatedly tells you to use the online App to solve yr problem!
by every person who rings their bank or ISP for help. Friday nights can take over TWO HOURS on hold to spk w a bank person.

Delighted might be a bit much. I suppose it comes down to your own personal experience in terms of waiting on hold.

My longest wait time had been 1.5 hours.

I'm arguing that the Banks are the ones pushing everyone online. So the Banks should be bullet proofing accounts.

The ACFA COO's situation was unauthorised access/transactions. There was no information to indicate he'd been scammed or that he'd clicked on to scam links etc.

Ok we're all (most of us) online now, exactly where the Banks want us.

The ball is now in the Banks' court - protect the money contained in the accounts that are accessible online.

What happened to the ACFA COO, shows the Banks' failures to bullet proof accounts.

 

[Jarred Santos]

I'm arguing that the Banks are the ones pushing everyone online. So the Banks should be bullet proofing accounts.

The ACFA COO's situation was unauthorised access/transactions. There was no information to indicate he'd been scammed or that he'd clicked on to scam links etc.

Ok we're all (most of us) online now, exactly where the Banks want us.

The ball is now in the Banks' court - protect the money contained in the accounts that are accessible online.

What happened to the ACFA COO, shows the Banks' failures to bullet proof accounts.

Absolutely spot on, @Annna! The wait times are almost always so horrendous and occur at very stressful moments. The least they could do is be prompt with their action!

 

[Staffordshire Whippet]

'When someone is scammed, they need responsive support, there on the spot.', said Mr Untersteiner....

"There, on the spot" is the main reason people get conned, on-line; artificial sense of urgency is the #1 tool scammers rely on.

I've said it many times before, and I'll continue to do so - remove the urgency factor. Discontinue on-line banking and do your transactions face-to-face. Think before you act: "Is the rush really worth it?"

 

[Annna]

'When someone is scammed, they need responsive support, there on the spot.', said Mr Untersteiner....

"There, on the spot" is the main reason people get conned, on-line; artificial sense of urgency is the #1 tool scammers rely on.

I've said it many times before, and I'll continue to do so - remove the urgency factor. Discontinue on-line banking and do your transactions face-to-face. Think before you act: "Is the rush really worth it?"

I agree but can't see them reverting back to what I'd call proper customer service.

Motivation - Money, money, money

 

[Cyberchook]

Has anything ever been resolved like this before NO..Banks rule and Multi-Nationals shake hands with them. We pay their salaries to do this.

 

[MariaG]

There is an inequality in the way banks are doing business.
They are pushing people online, however, those who need a human to talk to are having to listen to stupid messages that say "we value you.blah, blah, blah".
Straight away, the scales have been tipped against the customer. Less branches = less humans to talk to .... then .... no increase in phone team members = disaster for the customer.
I filled in a survey not long ago. It was about banking. One of the questions asked was about how much I trust banks to work in my best interest. My answer ... stupid question.
Another question was ... what could banks be doing better. My answer ... stop closing branches, increase the number of humans to speak to and bring out a survey where the banks evaluate the customers as we do most of their job online.
This situation has to change.
As has been said by others on this thread, the banks have pushed the agenda for online banking, yet, are not pushing for stronger safeguards, and in many cases refusing to accept responsibility for the theft of funds.
I have always believed that every problem has a solution, I just have to find it. In this case, unless banks look at things from the perspective of the customer, nothing will happen.
Perhaps we need a few bank CEO's to become scam victims before any action is taken.

 

[Annna]

There is an inequality in the way banks are doing business.
They are pushing people online, however, those who need a human to talk to are having to listen to stupid messages that say "we value you.blah, blah, blah".
Straight away, the scales have been tipped against the customer. Less branches = less humans to talk to .... then .... no increase in phone team members = disaster for the customer.
I filled in a survey not long ago. It was about banking. One of the questions asked was about how much I trust banks to work in my best interest. My answer ... stupid question.
Another question was ... what could banks be doing better. My answer ... stop closing branches, increase the number of humans to speak to and bring out a survey where the banks evaluate the customers as we do most of their job online.
This situation has to change.
As has been said by others on this thread, the banks have pushed the agenda for online banking, yet, are not pushing for stronger safeguards, and in many cases refusing to accept responsibility for the theft of funds.
I have always believed that every problem has a solution, I just have to find it. In this case, unless banks look at things from the perspective of the customer, nothing will happen.
Perhaps we need a few bank CEO's to become scam victims before any action is taken.

I totally agree. Banks need to give a damn about their customers. They do not now.