Consumer-institution financial disputes hit record high

The number of claims handled by a financial dispute resolution body hit a record high in 2025, with most involving scams and fraud.

- Sarah Koh

This marks a major shift from the insuranceand investment-related claims that traditionally formed the bulk of work at the Financial Industry Disputes Resolution Centre (Fidrec), which has handled disputes between consumers and financial institutions, such as banks, since 2005.

There were 2,646 claims made by consumers in the financial year that ended in June, said Fidrec in a statement on Sept 24.

Of these, 49 per cent involved scams and fraud, followed by 25 per cent relating to the practices and policies of financial institutions, which include contractual agreements between the consumer and institution.

Market conduct, which refers to practices like mis-selling or misrepresentation, came in at 15 per cent.

The most common scam type Fidrec has handled involves compromised user credentials, said Fidrec chief executive Eunice Chua during a media briefing on Sept 24. In such cases, login information is stolen from users via phishing and malware, which allows scammers to access bank accounts and e-wallets.

An increasingly common tactic is scammers linking stolen card details to their e-wallets, said Fidrec, adding that victims often miss initial notifications about this.

"When people file a complaint with us, they often are not able to pinpoint how their credentials were lost, stolen or compromised," said Ms Chua.