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The Office of the Arbiter for Financial Services has seen an uptick in the number of decisions issued, with 125 in 2025 compared with 94 the previous year. In 2023, it had issued 137, although this represents a backlog of decisions brought forward from 2022.
The Arbiter reported in its December newsletter, that of the 125 decisions, five complaints were fully upheld, 38 cases were partially upheld and 82 cases were not upheld (for various reasons, including the merits of the case, lack of competence, legal issues and a single case where the complaint was considered frivolous).
In total, compensation amounting to around €286,000 was awarded to complainants in cases that were fully or partially upheld.
During the 12-month period, 65 cases were closed without adjudication, relating to a service provider forced into liquidation through regulatory action by the MFSA.
The Arbiter noted that 12 decisions were appealed, ten of which are still pending, noting – "with regret" – that banks and financial institutions continued to appeal decisions taken in which full or partial compensation was awarded, which "merely delay the payment of compensation due to complainants, often victims of fraud scams".
Over 330 new complaints were registered in 2025 compared to 251 the previous year, a record since the Arbiter's Office was established in 2016. Unfortunately, this increase reflects what was described as "the explosion of fraud complaints based on crypto fraud", with Arbiter noting that "licensed institutions are inflexibly denying any responsibility and it takes decisions issued by the Arbiter, being confirmed on appeal, for quicker outcomes to filter through the mediation settlements".
The Office is issuing several guidance papers to explain its expectation on the conduct of licensed institutions insofar as scam experiences, and it also recommended investment in modern technology, including AI, to prevent these scams.
Notwithstanding this, it also warned consumers "that protection is better than cure." As from 1 October 2025, the remit of the Arbiter for Financial Services was widened and it can now accept complaints from any person or entity that has fallen victim to a suspected fraudulent payment transaction involving financial services providers.
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