The Financial Services Council (FSC) and its superannuation funds members have released a standard that aims to protect consumers against fraud and scams.
Published on 1 July 2024, the FSC’s Standard — titled FSC Standard No. 29 Fraud and Scam Mitigation Measures for Superannuation Funds — demonstrates the FSC members’ commitment to protecting their customers from scams and fraud by setting expectations for the industry to follow to ensure strong levels of mitigations are in place, says the FSC in a statement.
FSC CEO Mr Blake Briggs said, “Australians last year reported a loss of A$2.74bn ($1.83bn) 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.
“The superannuation industry is responsible for over A$3.5tn in retirement savings for Australians and FSC members take their duty to protect their customers very seriously. Although there are already mitigation measures in place, this industry-first standard provides our 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. 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 Standard comes into effect on 1 July 2024 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 is a peak body that sets mandatory standards and develops policy for more than 100 member companies in Australia’s financial services sector.