ASIC issues scam warning
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ASIC has urged superannuation trustees to improve their anti-scam measures.
In an open letter (PDF), ASIC Commissioner Simone Constant says trustees “are the first line of defence to trillions of dollars in members’ retirement savings” and must take stronger steps to prevent, detect, and respond to scams.
ASIC's recent review of 15 superannuation trustees revealed that none had an organisation-wide scam strategy.
The review found that trustees were overly reliant on anti-fraud measures and lacked focus on scams, often failing to identify warning signs that members had been tricked into transferring funds.
“Trustees in our review also lacked many of the foundational anti-scam practices that ASIC identified in relation to banks,” the letter noted.
Key deficiencies included the absence of a scams strategy, dedicated scam reporting, and assessments of scam prevention capabilities.
ASIC highlighted that as banks and financial service providers strengthen their scam prevention measures, superannuation funds risk becoming “a soft target” for scammers.
The letter urged trustees to conduct assessments of their anti-scam and anti-fraud measures, review ASIC’s scam prevention reports, and allocate scam management responsibilities within their organisations.
ASIC emphasised that trustees “cannot outsource their obligations to third parties” when it comes to protecting members' funds.
