Customer loses $14,000 after scammer impersonates bank employee…

The Banking Ombudsman has recently declined a customer’s complaint against her bank after losing $14,000 to a scammer impersonating a bank employee.

The customer received a call from someone claiming to be an employee from her bank. The person’s phone number matched the bank’s phone number.

The person told the customer that someone was attempting to get access to her accounts and advised that she should move her money into a “safe account”. Over the course of three internet banking transactions the customer transferred $21,000 to another account with the same bank. 

The phone call then disconnected and the customer called the bank back. The bank told the customer that no one by that name worked there. 

The bank was able to recover $2,300 of the transactions, and offered to reimburse the customer $4,675 of the remaining $18,700. The customer made a complaint to the Banking Ombudsman. 

The Ombudsman considered that the bank had a duty to follow the customer’s transaction instructions. However, it had to do so with reasonable skill and care. This duty included detecting “warning signs of a real possibility that a customer is being scammed or defrauded”. These are called “red flags”. 

In this case, the Ombudsman considered that there were no red flags the bank ought to have seen. The bank was therefore not required to inquire about the transactions or warn the customer about the possibility of a scam. 

The bank had also taken reasonable steps to recover the funds, such as freezing the receiving bank account within 15 minutes of the customer calling the bank. 

The Ombudsman concluded that the bank had not breached its duty and was therefore not required to reimburse the customer. The customer accepted the bank’s offer to reimburse her $4,675, and therefore lost $14,000 from the scam. 

This case is another example of the advancement of scams with modern technology. It is essential to understand how you can protect your finances. 

If you are confused about your legal rights, it pays to seek advice from a professional with experience in the area. 

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.