The Australian Financial Complaints Authority (AFCA) has welcomed confirmation from the Federal Government that it will serve as the single, centralised external dispute resolution scheme for scam complaints under the Scams Prevention Framework.
The framework expands AFCA’s jurisdiction to consider the role of banks, telecommunications providers and digital platforms in scam complaints, creating a single pathway for consumers who have been unable to resolve complaints through internal dispute resolution processes.
Under the new arrangements, designated banks, telcos and digital platforms will be required to become AFCA members from 1 September 2026, with AFCA set to begin handling scam complaints under the framework from 31 March 2027.
AFCA said the multi-party external dispute resolution service would be the first of its kind globally and reflected the increasingly complex nature of modern scams, which often involve multiple organisations across different sectors.
“We welcome the Government’s announcement and the confidence it has placed in us to act as the external dispute resolution scheme under the Scams Prevention Framework. We have significant experience handling complex complaints at scale, and we’ll be using that experience to build an effective and accessible service,” said AFCA’s acting chief executive officer and chief ombudsman Dr June Smith.
Smith said the authority was preparing to work with industry participants and other stakeholders as the framework is implemented.
“We recognise the size of the task and look forward to working closely with all stakeholders to deliver a robust, fair and efficient dispute resolution process,” said Dr Smith.
The announcement follows AFCA’s recent appointment of David Lacey as its inaugural chief scams officer, who will lead the establishment of the new scam-focused dispute resolution scheme.
Lacey said scams remained one of the most significant issues facing consumers and highlighted the growing sophistication of scam activity.
“Scams are one of the most significant issues affecting consumers today. They are increasingly sophisticated and they leave people facing devastating financial and emotional consequences” said the chief scams officer.
“We recognise the complex nature of modern scams and the need for fair outcomes for victims and the organisations involved. We look forward to welcoming new members to AFCA.”
