FSC releases new standard on scam mitigation

The Financial Services Council (FSC) and its superannuation funds members have adopted a new standard to protect consumers from financial harm.

The FSC's Standard demonstrates its members' commitment to protecting customers from scams and fraud by setting expectations for the industry to follow to ensure strong levels of mitigations are in place, the lobby group said.

"Australians last year reported a loss of $2.74 billion to frauds and scams, and with scammers becoming more and more sophisticated, the industry recognises it needs to be ahead of the curve when it comes to dealing with criminals," FSC chief executive Blake Briggs said.

"The superannuation industry is responsible for over $3.5 trillion in retirement savings for Australians and FSC members take their duty to protect their customers very seriously."

Briggs said although there are already mitigation measures in place, the new Standard provides members with a consistent approach for dealing with scams and fraudulent activity.

"The FSC Standard includes the need for multifactor authentication on all high-risk transactions as well as requiring funds to have clear policies and procedures for preventing and dealing with scams and fraudulent events," he said.

"Under the Standard, customers will receive a high standard of risk-mitigation, with flexibility for vulnerable customers who are unable to access multifactor authentication."

The scam and fraud mitigation measures include adopting internal policies to detect and prevent fraudulent activity, have a clear understanding of roles and responsibilities to ensure property scam detection and prevention, and being aware of high-risk transactions.

The new Standard also sets out that super funds should ensure their customers are aware of existing policies that relate to the resolution of customer complaints as they relate to both internal and external dispute resolution forums.

The Standard comes into effect today, July 1, for voluntary compliance, with full compliance required from 1 July 2026, which provides two years for superannuation funds to implement the necessary system and technology changes where required. The FSC strongly encouraged its members to target early compliance.