Financial claims up 91.6% to 2,188; scam-related claims jump: Fidrec
Vivienne Tay
THE number of financial claims handled by the Financial Industry Disputes Resolution Centre (Fidrec) rose 91.6 per cent to 2,188 for the financial period from Jul 1, 2022, to Jun 30, 2023.
This came as the consumer financial dispute specialist received a record number of enquiries, up 18 per cent on the year to 7,724 from the previous corresponding period.
Out of the 2,188 claims filed, the centre completed 1,172 claims, nearly a third of which were scam-related. The centre handled 509 scam-related claims during the period and completed 364 claims.
The median claim amount stood at S$5,912, down 24.3 per cent from the same period a year ago. The average claim amount, meanwhile, was up 18.6 per cent to S$45,760.
Complaints against banks, finance companies and credit bureaus continued to form a majority of claims, accounting for 67 per cent of total claims handled at 998 cases. This was more than double the 473 cases handled in the same period last year.
More than half (509 claims) were related to fraud and scam, up 95 per cent from the 261 claims received in the year-ago period. The median claim amount for scams was S$5,154, while the average claim amount stood at S$33,654.
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The largest claim related to scams was about S$1.3 million, Fidrec noted.
Claims related to impersonation saw the highest number of claims at 129, followed by compromised credentials (123 claims), phishing (37 claims), investment (23 claims) and others (52 claims).
General insurers registered the second highest share of total claims, accounting for 15 per cent, followed by life insurers, whose share of total claims stood at 13 per cent.
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Complaints against general insurers mainly involved disputes on liability, while complaints against life insurers were regarding disputes on liability, inappropriate advice, misrepresentation or disclosure issues.
The remaining claims involved capital markets and services licensees, licensed financial advisers, and insurance brokers.
Around 82 per cent of completed claims were done at mediation. Of this number, 70 per cent of consumers accepted an offer from a financial institution, while 30 per cent decided not to pursue their claim further.
When it comes to consumer profiles, the most number of claims were from claimants aged 41 to 50 (26 per cent), followed closely by those aged 51 to 60 (25 per cent) and claimants aged 31 to 40 (23 per cent).
Fidrec chief executive Eunice Chua said public outreach efforts reached more than 1,100 persons in the Jul 1, 2022, to Jun 30, 2023 period. The centre was able to complete 21 per cent more claims than the same period last year despite the heavier caseload due to upgrades to its digital portal management system implemented in FY2021.
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