Digital platform complaints soar as Aussies face account lockouts, bans, hacking and unresolved disputes

Australians locked out of social media accounts, hit with unexpected fees, or left struggling with automated chatbots are driving a sharp rise in complaints about major digital platforms — but the watchdog says it is powerless to help. A new report from the Telecommunications Industry Ombudsman reveals more than 1500 people have contacted the organisation since 2023 seeking assistance with disputes involving social media, cloud storage, app stores and other online services. Complaint volumes are climbing rapidly — the TIO received 26 per cent more complaints in the first half of 2025 compared with the same period in 2024, and 47 per cent more than in the same period in 2023. Cases in 2024 were already up almost 30 per cent on the previous year, with numbers continuing to rise this year. The report, titled Digital Platforms Complaints Insights, covers 1537 inquiries between January 2023 and August 2025, with most disputes involving the biggest tech companies. It shows the most common issue is account access problems, reported in 36 per cent of complaints — and these are likely to increase during the rollout of the under-16s social media ban. It was revealed 71 per cent of complaints related to Google, Microsoft, Apple, Hubbl, and Meta, with Google receiving the highest proportion. Account access issues, including bans, blocks, and hacking, made up 36 per cent of complaints. Many involved automated bans or account verification failures, leaving users locked out over alleged breaches “with no warning or explanation” — a pattern the TIO identifies as a systemic failure across major platforms. The most financially damaging case study involved Jacob, a small-business owner, whose social media account — his main source of income — was hacked. The hacker demanded a ransom of $5000 to recover the account, causing Jacob to worry about his business staying afloat. Another case study detailed Zuri’s family, where an accidental in-app purchase costing more than $700 caused financial stress for her single-income family. A separate example involved Ruth purchasing refurbished phones through an online marketplace that stopped working after a network shutdown, costing her more than $1000. Fees and charges disputes made up 34 per cent of complaints, with faulty products or services accounting for another 25 per cent. These often involve undisclosed subscriptions, continued payments after cancellation, or difficulties accessing refunds, problems the report identifies as systemic. The report notes that by the time Australians reach the ombudsman, they have typically “exhausted forums, chatbots and email helplines”, indicating long and fruitless attempts to resolve problems directly. “We know there are problems with people hitting AI brick walls and struggling to get the help they need,” Ombudsman Cynthia Gebert said. Ms Gebert said Australians were paying the price when things go wrong on digital platforms. “Digital platform issues don’t affect everyone equally. How much someone is impacted depends on their personal situation,” she said. “Small businesses are particularly vulnerable. Losing access to an account or having data compromised can disrupt supply chains, damage reputations, and cause financial loss. “The TIO also hears from people suffering financially, experiencing extreme stress and being cut off from platforms they rely on for support and communicating. “When things go wrong online, the cost is profound — people and small businesses are losing time and money,” Ms Gebert said. “People are struggling to solve their complaints directly, coming up against unhelpful chatbots and automated emails, so they turn to us.” Unlike telecommunications issues, which the ombudsman is empowered to resolve, digital platform disputes currently fall outside its jurisdiction. “It’s heartbreaking telling people that unlike issues with telco providers, we don’t have the power to help resolve their digital platform disputes, no one does,” Ms Gebert said. “A Communications Ombudsman needs to be backed by legislation and have the hallmark features of the complaint model Australia knows works — the industry-based Ombudsman scheme. “It needs the power to compel information, make binding decisions, publicly report on complaints, and investigate systemic issues.” “As the social media ban rolls out, it’s critical people have appeal rights when digital platforms get things wrong — and a Communications Ombudsman has an important role to play in ensuring access to justice for consumers,” Ms Gebert added. The TIO warns that this regulatory gap is eroding trust in the digital economy, noting that “integrated functionality” across devices and apps means a single lockout or hack can have “wide-reaching impacts” on people’s work and personal lives. The TIO said the harms reported by digital platform users increasingly mirror those seen in the telco industry, including account lockouts, hacking, and automated systems failing to escalate serious issues. The ombudsman notes this similarity is “by design”, as both sectors rely heavily on subscription models and automated account management. Small business owners face some of the most severe consequences, with livelihoods threatened by hacking, ransom demands, or unresolved account bans. Individuals with disabilities and families under financial pressure also appear prominently in the case studies. The situation is worsening, with complaint volumes rising each year and platforms showing no documented improvement in internal dispute handling. While the Australian government called for voluntary internal dispute resolution standards by July 2024, the TIO confirms these measures “are still being developed”. The TIO highlights paired case studies showing how confusing the system is for consumers. David, a small-business owner whose work email was hacked, lost $5000, but because his email was linked to his telco provider, the TIO was able to intervene. Lola, who suffered the same kind of hack, lost sentimental photos, personal documents and access to her digital wallet, but because her email wasn’t linked to a telco account, the TIO had no power to help. A similar contrast appears in account lockout cases; a telco-linked lockout can be resolved, while a social media business account lockout cannot, even if the harm is identical. Beyond individual cases, the TIO warns the lack of accountability undermines the broader digital economy. The TIO urges the creation of a new communications ombudsman that would extend its remit to digital platforms, giving Australians one clear place to resolve issues that currently fall through the cracks. The proposed body would operate like existing external dispute resolution schemes, tackling systemic problems and ensuring platforms meet minimum complaint-handling standards. “A Communications Ombudsman can play a role in balancing the scales for people currently falling through the cracks, increasing trust and confidence in the digital economy, and righting digital wrongs,” Ms Gebert said.