Claims to financial dispute body hit 20-year high; scam-related cases up 55%

The Financial Industry Disputes Resolution Centre (Fidrec) received 4,355 claims for the financial year, a 20-year record high amid continued growth in scam-related disputes.

In a statement on Wednesday (Nov 26), it said that claims spiked by 50 per cent from the previous financial year where it received 2,894 claims.

Of the claims received, 2,646 were accepted for handling, representing a 22 per cent rise from the previous fiscal year.

According to their annual report also released on Wednesday, the median and average claim amounts were $4,859 and $46,660 respectively.

Scam claims up by 55%

Among the various claims, fraud and scam-related disputes surged by 55 per cent to 1,285 claims and accounted for almost half of the claims handled.

A majority of these cases involved compromised credentials, where consumers discovered unauthorised transactions on bank accounts, payment cards or digital wallets without knowing how their credentials were obtained, according to Fidrec.

Such cases accounted for 64 per cent of scam-related claims, up from 44 per cent the year before.

Apart from scams, Fidrec also handled disputes related to financial institutions' policies, market conduct and service standards.

The independent financial body also said that nearly all financial institutions made claims in the recent financial year.

In particular, banks and finance companies accounted for 69 per cent of claims — a total of 1,831, up from 1,387 the year before.

Life insurance was the only category with a decline in claims, which fell to 323 from 387 the previous year.

"The record number of claims this year is a clear reminder of how quickly financial risks are shifting," said Fidrec chief executive officer, Eunice Chua, adding that the institution will continue to step up their education initiatives amid the rapidly changing environment. 

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dana.leong@asiaone.com