The Financial Industry Disputes Resolution Centre (FIDReC) logged 4,355 claims this year as scam disputes drove its highest caseload in two decades.

Claim volumes rose 50 percent from the previous year, led by a surge in scam cases, broader disputes across financial institutions and stronger public familiarity with FIDReC’s services.

Of all filings, 2,646 were accepted for handling, up 22 percent, while 2,358 were completed, a 36 percent increase.

The Early Resolution phase introduced in July 2024 contributed to the gap between claims received and handled.

The process gives parties 10 business days to resolve matters directly and closed 811 cases, or 19 percent of all filings, before mediation or adjudication.

Scam disputes remained the largest category with 1,285 cases, up 55 percent.

They formed 49 percent of all handled claims compared with 38 percent a year earlier. Compromised credentials continued to dominate, accounting for 64 percent of scam cases.

Scam victims were largely older consumers, with those aged 51 to 60 forming the biggest age group.

Across all disputes, consumers aged 51 and above made up nearly half of FIDReC’s caseload.

Claims Stretch Across Banks, Insurers, Advisers and Payment Firms

Banks and finance companies remained the main source of disputes with 1,831 cases, or 69 percent of claims handled.

Conduct-related issues such as unsuitable product recommendations, misrepresentation and service lapses added to scam-related complaints.

General insurers recorded 297 disputes, capital markets licensees saw 94 cases and financial advisers and brokers accounted for 84.

Payment service providers appeared for the first time with 17 cases, most of them scam-related. Life insurers were the only category to see a drop, falling to 323 from 387.

Case studies in the annual report pointed to growing risks in digital wallets, international fund transfers, leveraged trading, premium financed insurance and medical claims linked to co-payment requirements and policy definitions.

The year marked FIDReC’s 20th anniversary. The centre raised its adjudication limit to S$150,000, prepared to extend its scope to small businesses and non-large charities from July 2025 and completed the onboarding of payment service providers for stored-value e-wallet disputes.

It also expanded its digital portal and continued engagement with industry and global ombudsman groups.

Mediation accounted for 88 percent of completed cases, while 12 percent proceeded to adjudication.

Of those adjudicated, 16 percent resulted in an award for the consumer.

The median claim amount fell 10 percent to S$4,859 and the average amount declined 10 percent to S$46,660.

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. As scams grow more sophisticated and financial offerings become more complex, consumers are looking to FIDReC for clarity and fair resolution.

We will continue to step up our education initiatives, and we hope the industry will draw lessons from these disputes to strengthen customer experience, transparency and fair dealing.”

Featured image: Edited by Fintech News Singapore, based on image by farknot via Freepik