5 Things to Know About Lodging a Financial Complaint with AFCA
The Australian Financial Complaints Authority - also called AFCA - can make decisions about things like reimbursement after you’ve experienced fraud or financial loss.
It’s a not-for-profit Ombudsman service - which is more like an informal tribunal than a court. It’s free for everyone to use, even if you aren’t an Australian citizen.
AFCA is funded by financial firms - not taxpayers - and technically AFCA offers what’s called ‘external dispute resolution’ - also called EDR. It has complex rules and guidelines.
AFCA is not a regulator, but is supposed to fix the root causes of complaints, improving processes to prevent them from happening again, and making sure consumers are compensated when harm has occurred.
AFCA and the regulator Australian Securities & Investments Commission - also called ASIC - share information and updates to avoid double-handling and try to work together to protect consumers and improve industry standards.
There are new Scam Prevention Framework laws that are waiting for Codes to be passed by the Government which would change the way AFCA works.
You can always call and email AFCA to ask questions, and check their website for the latest rules.
Scam Victim Alliance has asked AFCA to consider these rule changes to help victims of cyber deception and fraud.
Tip 1: Find the right financial firm to complain about
Technically, lodging a complaint with AFCA is easy - you can phone or email them or use their online portal to outline your complaint in writing.
The whole complaint process is handled remotely over telephone calls, conciliations and letters. All documents are lodged in the AFCA portal. You will be assigned a case worker who will explain your complaint process to you.
In reality - especially if you’ve experienced a complex and sophisticated cyber-enabled fraud - it’s nearly impossible to identify the firm you need to complain about, let alone navigate AFCA successfully.
You also first need to have raised an internal complaint - known as Internal Dispute Resolution, or IDR - before you take a complaint to AFCA. This further adds to delays
Scams are complex, (so is AFCA’s complaint process)
There are 3 distinct stages for all AFCA complaints - they take weeks longer than AFCA says in its factsheet.
Digi Group’s Sunita Bose - who lobbies the government for tech industry giants like Meta and Google - told the Senate Inquiry into Scam Prevention Framework laws “no one can confidently explain today when companies are liable for scams because those key details haven't been worked out before. We're legislating with dozens of companies involved in any one particular scam.”
Watch her video below to understand the complexity of different corporations that you can complain about to AFCA who are often involved in modern cyber-deceptions.
It’s difficult for victims of fraud, financial crime, insurance disputes and other cyber-enabled deceptions to:
Identify the right firm liable for your complaint
Find the right law, code or misconduct that AFCA can act upon.
You can start with a phone call to AFCA for guidance. You can use the ‘find a financial firm’ tool on the AFCA website to see if you have a complaint with a member firm.
More likely, you need to explore Tip 2 to assemble your complaint and look at the many different ways the law applies to your unique circumstance.
Other useful resources to talk to about your complaint before you lodge it with AFCA include looking up community centres or legal aid information in your state. Google “community law centres near me” or similar to find organisations.
National organisations who might be able call for help include:
When you start any complaint about an authorised financial transaction, you need to be mentally strong and prepared for it to take months to resolve.
Our Treasurer Sylvia Chou politely reminds people not to think AFCA will be a life boat to deliver the justice you know you deserve - it takes emotional resilience and high levels of legal and digital literacy to succeed at AFCA.
Tip 2: Self-investigate your case (and the law, codes and AFCA rules that apply)
Scam Victim Alliance helps you connect with others who've been through similar AFCA complaints - so you can learn from their experience and find the best path forward.
That’s why we offer a private online community, where members share insights under Chatham House Rules to support each other.
Banks, AFCA and other financial firms commonly ask complainants to sign non-disclosure or confidentiality agreements when they settle to make sure everyday people can’t get access to valuable information that would help them resolve a complaint.
We believe this confidentiality leaves victims of cyber-enabled deceptions and fraud in a weak position to negotiate their complaint. It’s one of the reasons Australian scam victims have such low rates or reimbursement, ranging from just 2% to 5%.
Big corporations like banks and insurers know that most people can’t afford to go to court. They also make the free AFCA process deliberately stressful for complainants, commonly dragging out response times and failing to provide AFCA the evidence or information needed to examine your complaint.
AFCA rarely investigates your case. Make sure your complaint is simple to understand and you know the legal points to raise. Use as few words as possible.
AFCA rules are changing in March 2026. In some cases it might be better to wait before lodging your complaint.
Scam Victim Alliance is advocating for AFCA rules that give victims more rights for reimbursement and a trauma-informed response from AFCA staff.
Tip 3: Should you pay an agent or ask a friend to be your agent at AFCA
You can pay an AFCA agent to represent you at AFCA, but this can be expensive (and heartbreaking), too.
Paid AFCA Agent Simon Smith has recovered more than $1 million through settlements and says successful reimbursements usually happen after the AFCA process has failed to resolve matters.
These negotiations are usually done through professionals, who know how to hold financial firms accountable on legal issues that get the outcomes needed.
Commonly, the financial firm you deal with at AFCA would prefer to have a private settlement or mediation. Financial firms don’t want difficult determinations or settlements to be ‘on the record’. This is why financial firms will commonly crush complainants who take civil action in court against them.
The big advantage of AFCA is that it is free to force the financial firm to negotiate something with you - but it takes skill, strategies and strong mediation tactics to get a good outcome.
Simon Smith says victims often struggle to prove their case because AFCA because of a range of issues, such as:
AFCA is funded by financial firms, which creates a conflict of interest.
No police engagement at AFCA (fraud seen as a civil issue so the ‘crime’ is not treated in tandem with the financial complaint).
Financial firms are not compelled to voluntarily share the vital evidence you need to prove your case.
A lack of legal obligation for financial firms to protect consumers, especially under the ePayments Code, which AFCA has asked the Government to change..
People often give up or “write off” their losses because the system is too difficult to seek reimbursement.
Scam Victim Alliance founders have also helped recover fraud losses through the AFCA process, but it is time consuming and often emotionally upsetting for people.
We always recommend appointing an agent - a close friend or relative - to do the hard work for you.
We DO NOT recommend paying an AFCA agent, lawyer, forensics or recovery services until you understand your case. Every case is different and unique.
Our Treasurer has spent hundreds of thousands of dollars on different legal and recovery services that have not yet resolved her case.
Recovery scams are rife, so registering for our private online community can help protect you from spending money on the wrong things for your case.
Tip 4: Claim financial hardship and identify if you’re vulnerable
For some people, complaining to AFCA coincides with other life struggles, which can make it hard to keep up with credit cards, buy now pay later, mortgages or other bills.
In these cases, people can claim what’s called ‘financial hardship’ and the people you owe money must make a financial arrangement to help you get ahead of things again.
You can read where to get help and support if you face financial hardship on ASIC’s Moneysmart website. There are also No Interest Loans (NILs) for people who qualify for 0% interest and no fees.
There’s also special requirements for AFCA to be accessible and deal with vulnerability
Tip 5: Take C.A.R.E at AFCA
Scam Victim Alliance have helped people recover money through AFCA, at no cost to them. We volunteer our time to help.
Scam Victim Alliance members have lived experience of losing money to fraud and cybercrime and want the AFCA process to help victims, rather than make it hard for them.
We have detailed articles to help people navigate AFCA in our private community.
If you’d like access to this - along with free video resources to help support you emotionally - please JOIN OUR COMMUNITY.
We ask everyone who joins our private community to:
Register a True Vault true identity - we need to know that you are who you say you are to keep our community safe from recovery scammers.
Respect people’s privacy and confidentiality - Chatham House rule applies so you can use the information but not identify anyone personally.