61% of members consider security a key reason to stay with their super fund

As Australia’s superannuation funds come under increased scrutiny from more sophisticated cyberattacks and scams across the financial sector, new research from MUFG Retirement Solutions, a division of MUFG Pension & Market Services (MPMS), reveals a potential trust gap:

– 77 % of members expressed moderate to high concern about the security of their retirement savings
– 61 % said they would remain loyal to a fund with stronger security measures
– 55 % would consider switching funds due to security concerns or a poor digital experience
– 46 % don’t recall receiving a single security update from their fund in the past year

The findings, published in a new whitepaper “Protecting Australia’s Retirement Savings in a Digital World”, highlight the strategic need for funds to invest in digital identity and cybersecurity initiatives.

Real-time fraud detection and frictionless digital identity processes are now key to member retention. Funds that implement layered, transparent, and proactive security measure can convert risk into opportunity – building loyalty and competitive advantage in a volatile market.

A significant test for the industry

In April 2025, a cyber threat coinciding with global market volatility created a significant test for the entire superannuation industry. Across MUFG Retirement Solutions’ client base, member inquiries surged 71 % above forecast. Our ALERT fraud detection system monitors more than 11 million accounts, investigating up to 10,000 suspicious cases daily, and successfully protecting $21 million in member funds over the two months – demonstrating the tangible impact of proactive security.

“Cyber threats are evolving rapidly, and retirement savings are too important to leave to chance. At MUFG Retirement Solutions, we are not just responding to incidents – we are anticipating them, deploying advanced monitoring, building layered protections, and preparing our clients for the future of digital identity. Our goal is simple: to safeguard Australians’ retirement savings while delivering a member experience that is both secure and friction-free,” says Frank Lombardo, CEO of MUFG Retirement Solutions (ANZ).

Regulators are raising the bar

APRA’s June 2025 directive under CPS 234 makes it clear that super funds must significantly strengthen authentication controls, particularly for high-risk member activities and privileged access. Multi-Factor Authentication is no longer sufficient on its own – regulators now expect funds to implement proactive, forward-looking security measures that anticipate evolving threats, protect member assets, and demonstrate a commitment to industry-leading standards.

Digital identity is central

Advanced digital identity solutions provide a dual benefit for super funds: enhancing security while improving the member experience. Members expect verification for major transactions, but they also value seamless, mobile-first access and consistent processes across channels.

MUFG Retirement Solutions is actively working with super funds and government initiatives, including the Trust Exchange (TEx), to deploy next-generation digital identity solutions. These include biometric eKYC and verifiable credentials, enabling funds to verify member identities accurately, reduce fraud risk, and streamline interactions.

The way forward

Cybersecurity and digital identity are central to building member trust and loyalty. MUFG Retirement Solutions partners with its clients to close authentication gaps, implement layered identity verification, and work with government to prepare for TEx adoption – helping super funds protect Australians’ retirement savings and strengthen member confidence through a secure, seamless experience.

Download the whitepaper:  Protecting Australia’s retirement savings in a digital world
Connect with Eoin Burke to discuss fraud prevention and digital identity solutions.