Scams – Mandatory Industry Codes - Submission to Treasury Consultation Paper

• The total financial loss claimed by consumers in relation to these accepted complaints; and finally • The average outcome rate for closed cases which is a measure of the percentage of claimed losses by consumers that was returned to them at the conclusion of the AFCA dispute resolution process. [...] The ePC does, however, provide a regime to determine liability for unauthorised transactions and so if a scam transaction falls within the definition of “unauthorised” then the ePC is relevant to determine whether the firm, or the customer, should be liable for the loss. [...] Whether a transaction is technically unauthorised under the ePC however, requires a specific analysis of the definition in the ePC and its application to the circumstances of the transaction (or series of transactions). [...] Outcome AFCA found the bank was liable for the disputed transactions as the bank was unable to show the complainant contributed to her loss by breaching the passcode security requirements in clause 12 of the ePC. [...] ASIC has said that it would be monitoring the actions taken by the major banks in response to the findings in Report 761 and that it had commenced a review of the scam measures in place in other parts of the banking industry.