Bank had reasonable basis for suspecting fraud and withdrawing services

Home Guides & cases Case notes Scams - 77281

Bank had reasonable basis for suspecting fraud and withdrawing services

Categories:

Common scams targeting bank customers,

Summary:

Between March 2019 and May 2022, Jack was caught up in numerous scams, including one involving a woman from Ghana who promised him a share of her inheritance of gold. The bank became concerned about Jack's continued attempts to make payments to the woman, believing them to be probably fraudulent.

Published:

February 2023

It removed Jack’s ability to use his credit and debit cards or make international money transfers. Jack complained to us that the bank had based its decision to restrict his banking services on false information and hearsay and without any proof he was being scammed.

Our investigation

We reviewed the interactions between Jack and the bank since March 2019. The terms and conditions of Jack’s accounts allowed the bank to withdraw certain banking services without waiting for conclusive evidence a customer was a victim of fraud. It was entitled to act on a suspicion that fraud might be taking place, although it had to have a reasonable basis for forming this suspicion. We were satisfied the bank had formed its belief on such a basis, and it was therefore entitled to remove certain banking services from Jack.