ASFA launches financial crime initiative to keep Aussie savings ‘super safe’

23 September 2024

| By Jessica Penny |

The industry body is aiming to make Australia’s super sector “impenetrable for criminals” by developing safeguards against financial crime.

The Association of Superannuation Funds of Australia (ASFA) has launched a new project designed to bolster the superannuation sector’s defences against increasingly sophisticated cyber crime and fraud-related risks.

The ASFA Financial Crime Protection Initiative (FCPI), the industry body explained, represents a “united effort” to protect Australia’s retirement savings from the growing threat of financial crime.

Commenting on the launch, ASFA chief executive Mary Delahunty said that superannuation is the “cornerstone of financial security” for many Australians.

“This work will help to fortify our industry, helping it remain resilient in the face of these growing challenges,” Delahunty noted.

“By working together, we stand a better chance of safeguarding people’s savings and maintaining the trust and integrity of the superannuation system.”

The industry body explained that FCPI builds on ASFA’s previous work in the area, including guidance on fraud controls, which came into effect in July.

Expounding on what the new initiative hopes to accomplish, ASFA said it seeks to enhance collaboration and knowledge sharing between funds and critical service providers, including custodians, administrators and tech providers.

This would include connecting the superannuation sector, relevant government agencies and related financial services bodies.

The project also aims to develop industry-wide frameworks to combat financial and cyber crime, and help make Australians aware of the actions they can take to protect their super and data from scammers.

“ASFA is uniquely placed to lead this work across our broad membership base, and proud to be driving this initiative, ensuring the sector is prepared to tackle evolving risks with a proactive and unified approach,” Delahunty said.

ASFA’s work also builds upon the momentum of the government’s recent Scams Prevention Framework, which draft legislation came out last week for.

“As the peak body for superannuation, ASFA is in a unique position to bring together the superannuation sector, regulators and government to help keep Australians’ super safe,” Delahunty continued.

“Australia’s superannuation system is the envy of the world, let’s make it impenetrable for criminals as well.”

The launch comes shortly after the Australian Financial Complaints Authority (AFCA) urged super fund trustees to review processes in place to protect members from fraud amid increasing instances of sophisticated scam activity in superannuation.

Last month, AFCA reported another record number of financial complaints in the 2023–24 financial year.

Some 11,000 complaints were in relation to scams and less than 20 came from super fund members, said Heather Gray, AFCA lead ombudsman for superannuation.

“Scam-related complaints in super may be small in number but the average loss claimed was $88,736 and ranged as high as $344,000-plus – a potentially life-changing sum,” Gray underscored.

“In addition, in line with the trend in banking, we are starting to see instances of more sophisticated scam activity in superannuation.”