ASIC Warns Superannuation Trustees Over Weak Scam And Fraud Controls

The Australian Securities and Investments Commission (ASIC) has issued a warning to superannuation trustees, urging them to strengthen their anti-scam and fraud measures or risk exposing members to financial harm.

In an open letter signed by ASIC Commissioner Simone Constant, the regulator outlined its expectations for trustees to improve the prevention, detection, and response to scams and fraudulent activity. The letter follows an ASIC review of 15 superannuation trustees, which found that none had an organization-wide strategy in place to combat scams.

Superannuation trustees are the gatekeepers of their members’ money and cannot outsource their obligations to third parties when it comes to protecting their members from scams,” said Constant. “With scammers employing increasingly sophisticated tactics to manipulate superannuation members, taking prompt and proactive steps to monitor and address scam activity is vital.”

ASIC wants stronger security measures

ASIC has called on trustees to implement stronger security measures, particularly as scams continue to evolve and become more sophisticated. The regulator emphasized that superannuation funds hold the second-largest asset for many Australians, making them a key target for fraudsters.

ASIC has been increasing its focus on scam prevention across the financial services sector. The letter to trustees follows two previous reports: one published in 2023 that examined scam detection and response among Australia’s four major banks, and another in 2024 that extended the review to banks outside the major four.

Superannuation trustees are now expected to develop a comprehensive, organization-wide strategy to combat scams. ASIC has advised that trustees must take proactive steps to monitor accounts, educate members, and implement security controls to prevent fraudulent access.

The regulator’s review found that many trustees lacked consistent protocols for responding to scam attempts, and in some cases, delays in detection allowed fraudsters to steal funds before intervention. ASIC has stressed that a lack of clear procedures increases the risk of financial loss for members.

ASIC has reiterated that trustees must ensure their members’ funds remain secure, and failure to do so could lead to regulatory action. The regulator has also called for increased industry collaboration to strengthen overall protections across the superannuation sector.