Super sector continues to fail on anti-scam and fraud protection, risking Australians’ retirement savings

Super Consumers Australia welcomes the recommendations from ASIC’s review of scams and fraud-related website content across 47 superannuation funds. The review confirms that almost a year after cyberattacks on super funds and individual member’s retirement savings the $4.2 trillion dollar industry lags behind other financial services sectors.

This is concerning when more Australians will be entering retirement in the next few years with higher balances, where there are less frictions in accessing their funds. “This review highlights the need for the Federal Government to urgently add the superannuation sector to the rollout of a national Scams Prevention Framework. After another year of insufficient action we have no faith the sector will resolve these problems on their own,” says Xavier O’Halloran, CEO of Super Consumers Australia.

The review found significant gaps in the availability, quality and actionability of scams and fraud information for members on super fund websites. Compared to the big four banks, the review found the super sector to be well-behind – scoring just 40 to 60% against the assessment criteria compared to banks scoring 80% on the same criteria. This means that consumers are significantly less informed, protected and supported against increasing digital threats on their super.

Poor customer service is another major barrier to strong anti-scam and fraud protections. Some of Australia’s largest super funds (such as Australian Super, UniSuper and CBUS) can only be contacted during business hours on weekdays.

“People who fear they may have been a victim of a scam or fraud can’t even call their super fund to get help. This is just one in a string of customer service failures by super funds that is leaving Australians exposed to risk.” said Mr O’Halloran.

Super Consumers Australia is calling for:

• Inclusion of superannuation in the national Scams Prevention Framework rollout.
• The introduction of government promised enforceable customer service standards to more effectively prevent and respond to scams and fraud on superannuation.

“It’s time the super sector did its fair share in safeguarding Australia’s financial system and protecting their members’ retirement savings from scams and fraud.”