The superannuation sector peak body has today pushed back against ASIC for media commentary about scams in superannuation which appears to ignore the significant steps the sector has taken to effectively protect super savings.
“ASIC’s letter to superannuation trustees, released first to the media, seemingly ignores the super sector’s proactive measures to tackle these rare super scams, measures which ASIC is aware of,” said ASFA CEO Mary Delahunty.
“In the media statements this morning, ASIC appears to have come to the confusing conclusion that no evidence of scams existing or increasing means that the scammers are winning – instead of the other more reasonable conclusion, that the work of super funds and their services providers is effective. We hope that ASIC can recommit to constructively working with ASFA members to tackle the small, but important risk of scams in super.”
It’s important to know the facts: Last year, of the 11,000 instances of scams complaints received by the Australian Financial Complaints Authority (AFCA) there were fewer than 20 superannuation-related transactions, or 0.18%.
“Superannuation funds are actually some of the safest places in the country to have your money,” said ASFA CEO Mary Delahunty.
“Unlike banks or other financial institutions, our superannuation funds are unique because an individual’s money is held in a trust and is preserved and protected until that individual reaches retirement age or meets a condition of release, like release on compassionate grounds.
Ms Delahunty noted the only way to move super monies out of the super system is through the banking system, and banks already have very rich data and systems to help identify scams and fraud, as ASIC notes in their open letter today.
“Australia’s superannuation account holders shouldn’t be alarmed: the sector is taking action now to future proof against any potential risks, even though scams are incredibly rare in the superannuation sector.”
ASFA’s Financial Crime Protection Initiative (FCPI) was launched in September 2024. This Initiative brings together senior leaders from superannuation, super security, scams and fraud to work together to secure the sector against all forms of financial crime, including scams, through obligation mapping and standard development. ASIC is aware of this initiative.
“The superannuation sector isn’t sitting back and taking our very low rates of scams and financial crime for granted, we note the specific concerns ASIC has identified in their letter today and we commit, through the FCPI, to working on these,” said Ms Delahunty.
In addition to the FCPI the superannuation sector has taken the following actions to ensure maximum consumer protection in relation to any potential future risks of scams:
- ASFA has supported the Government’s Scams Prevention Framework (SPF), having made submissions to Treasury on 4 October 2024 and the Senate Economics Legislation Committee on 9 January 2025.
- ASFA has also strongly supported the Cyber Security Legislative Package, which has strong connections to protecting Australians against scams.
- In its pre-budget submission ASFA is calling on the Federal Government to implement measures that will improve equity for consumers and build on the strengths of Australia’s superannuation system.
- ASFA has been on the front foot to help Australians combat scams related to super. For example, we led the way with our Minimum Fraud Controls for Superannuation Funds, which mandated protections like multi-factor authentication be used by superannuation funds.
ASFA CEO Mary Delahunty said the key to achieving this is a focus on improving consumer awareness of sophisticated scams and protecting the hard-earned savings of superannuation account holders.
“In our pre-budget submission we are calling on the government to boost funding for the Moneysmart website to help educate consumers on how to recognise and avoid scams related to their super savings,” she said.
“All of us – government, superannuation funds and regulators – need to work together to protect Australians’ retirement savings from scammers. We should avoid alarmist and confusing messages and help the people of Australia better recognise what a scam might look like in super to empower people,” Ms Delahunty concluded.
For further information, please contact:
ASFA Media Manager Richard Garfield, 0451 949 300.
About the Association of Superannuation Funds of Australia (ASFA)
ASFA, the voice of super, has been operating since 1962 and is the peak policy, research and advocacy body for Australia’s superannuation industry. ASFA represents the APRA regulated superannuation industry with over 100 organisations as members from corporate, industry, retail and public sector funds, and service providers. We develop policy positions through collaboration with our diverse membership base and use our deep technical expertise and research capabilities to assist in advancing outcomes for Australians.
We unite the superannuation community, supporting our members with research, advocacy, education and collaboration to help Australians enjoy a dignified retirement. We promote effective practice and advocate for efficiency, sustainability and trust in our world-class retirement income system.
