2015 - 2016
Bank accounts
Transactional account
Mr A was a beneficiary who did casual work. A customer who owed Mr A money asked if he could transfer a sum of money into his account. Mr A would then withdraw this amount for him, minus what he was owed and an additional payment for agreeing to help. The customer transferred $2,000 to Mr A’s account. He withdrew $1,800 and gave it to the customer. A short time later, the bank contacted Mr A and told him he was the victim of a mule scam and that the $2,000 was stolen from another bank customer.
The bank reversed the $2,000 deposit which put Mr A into unarranged overdraft. It also revoked access to his accounts which meant he had to go to a branch to withdraw cash. In addition, it deducted $25 off his benefit to repay the $2,000.
The bank then alleged Mr A had given his customer his EFTPOS card and PIN to withdraw the funds. The bank said it had images of another man withdrawing funds from the ATM Mr A said he used.
Mr A complained to our office that this was false. He had never disclosed the PIN, and thought the bank should refund the $2,000. Mr A also believed he deserved compensation for the embarrassment caused by having to visit the branch weekly to make withdrawals.
Usually, a bank’s terms and conditions allow it to reverse a transaction if it’s satisfied the transaction is fraudulent.
We found that the image the bank relied on to claim Mr A had given his card to the customer was from a different ATM at the same time Mr A was withdrawing the $1,800. This meant its claim was incorrect.
As a result, and as a gesture of goodwill, the bank then refunded the $2,000 in addition to any extra fees and interest Mr A had incurred. The bank also offered $1,500 in compensation. Mr A accepted the offer and the complaint was resolved.
We encourage extreme care when accepting a funds transfer into your account, especially if you don’t know the person making the transfer. See more information in our Quick Guide on Common scams targeting bank customers for more information.
