Complaints to Fidrec hit 20-year high; scam-related cases spike 

[SINGAPORE] The Financial Industry Disputes Resolution Centre (Fidrec) received 4,355 claims in the financial year 2024/2025 – the highest number in 20 years.

This was a 50 per cent surge from the 2,894 claims received in the preceding financial year, it said in a statement on Wednesday (Nov 26).

Of the claims received, 2,646 claims were accepted for handling. This was a 22 per cent rise from the fiscal year before.

The median claim amount for this fiscal year was S$4,859, a 10 per cent drop from the year before.

As for the average claim amount, it was S$46,660, also down 10 per cent from the year before.

Scams make up nearly half of all financial claims

In particular, the number of fraud and scam-related disputes jumped to 1,285, up 55 per cent from 829 in the year before. These now account for 49 per cent of all claims handled, up from 38 per cent previously.

A majority of these cases involved compromised credentials, where consumers discovered unauthorised transactions on bank accounts, payment cards or digital wallets, without knowing how their credentials were obtained.

Such cases accounted for 64 per cent of scam-related claims, up from 44 per cent the year prior.

The report also noted that nearly all financial institutions reported a rise in the number of claims this fiscal year. Banks and finance companies accounted for the most – 1,831 claims, up from 1,387 the year before.

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Fidrec said in its statement: “Beyond scams, there were also increases in claims relating to service standards and market conduct, such as instances of misrepresentation, unsuitable product recommendations and inadequate disclosure.”

General insurers accounted for 297 disputes in this financial year, up from 241, driven by travel insurance claims arising from strong outbound travel activity.

Capital markets services licensees were the source of 94 disputes, up from 86. This reflects active trading in higher-risk products, where alleged service failures led to losses, said Fidrec.

Licensed financial advisers and insurance brokers accounted for 84 disputes in the financial year ended June, up from 61 in the previous fiscal year; there was a rise in market-conduct claims.

The only category of financial institutions in which the number of claims fell was life insurance – with 323 claims, down from 387 in the previous financial year.

The Fidrec report said: “Market-conduct issues made up the majority of claims within the category – 111 claims, up from 97 (in the year before).”

Fidrec’s chief executive officer Eunice Chua said the record number of claims this year is a “clear reminder” of how quickly financial risks are shifting.

“(This comes) as scams grow more sophisticated and financial offerings become more complex.”