The Australian Financial Complaints Authority (AFCA) has proposed raising its direct scam-loss compensation cap to A$1.263 million, roughly US$909,000, under draft rules released on Monday, 31 August 2026. The four-week consultation covers complaints involving banks, telecommunications providers and digital platforms.
The proposal would double AFCA's current A$631,500 ceiling for direct financial loss arising from scams and align the maximum direct-loss award with AFCA's existing monetary jurisdiction. The higher ceiling would apply once per scam, regardless of how many companies are involved in the conduct.
Expanded scope across multiple entities
Under the draft, AFCA could bring several regulated entities into a single complaint and divide liability between them. The rules would allow AFCA to add or remove a regulated entity at any point in the process. AFCA expects many complaints under the Scams Prevention Framework (SPF) to involve a combination of a platform carrying an advertisement, a telecommunications provider carrying a call or message and one or more banks moving the money.
Financial firms that are also regulated under the SPF, including banks, would be subject to new Scam Rules for covered conduct from 31 March 2027. AFCA's data show that in fiscal 2026, only 1.3% of its complaints involved an additional joined firm, indicating that multi-entity cases are currently a small share of its caseload.
Revised compensation limits
In addition to the proposed A$1.263 million direct-loss cap, AFCA has set out separate limits for indirect and non-financial loss. Indirect financial loss would carry a cap of A$6,300 for each regulated entity involved in a complaint. AFCA also proposes doubling the non-financial loss limit to A$12,600, while maintaining the existing A$5,000 cap on legal, professional and travel costs.
AFCA reported that 42 scam complaints in fiscal 2026 sought more than the current A$631,500 cap, underscoring the potential impact of the higher limit. The figures are set against A$2.18 billion in combined reported Australian scam losses during 2025, an increase of 7.8% from 2024, with investment scams accounting for A$837.7 million.
Consultation timeline and regulatory context
AFCA opened the consultation on 31 August 2026 and scheduled a stakeholder webinar for 3 September. Written submissions are due by 28 September. AFCA plans to evaluate submissions in November, obtain board and Australian Securities and Investments Commission (ASIC) approval by late December and publish the final rules and operational guidance in early 2027.
Separately, ASIC is seeking an A$35 million penalty from HSBC Australia over alleged failures in scam controls and complaint handling, highlighting broader regulatory scrutiny of financial firms' responses to scams.
