Unauthorised transactions a growing concern

John Kavanagh

Complaints to the financial ombudsman about unauthorised transactions, particularly in relation to online banking, rose sharply in the year to June.

The Australian Financial Complaints Authority released a snapshot of its 2020/21 dispute data yesterday, reporting that it received 70,510 complaints during the year, with 70 per cent of cases resolved by agreement.

Complaints involving personal transaction accounts rose 48 per cent, with unauthorised transactions accounting for 29 per cent of those complaints.

Complaints about electronic banking rose 76 per cent, with unauthorised transactions accounting for 28 per cent of those complaints.

The most complained about products were credit cards, accounting for 14 per cent of all complaints. The most common issues in relation to credit cards were unauthorised transactions and default listings.

AFCA chief ombudsman David Locke said: “There’s no single reason for these increases but people transacting online more during COVID will have contributed.

“Scams, which have accelerated during the pandemic, are also leading to growing complaints about transactions.”