Sienna tried again to make the required transactions, but could not. She subsequently learned the bank had a $1,000 daily limit on cryptocurrency transactions. Following this, she made further cryptocurrency purchases below this limit. When she tried to withdraw the money and the promised profits, the scammer said she couldn't do this without depositing more money. Sienna then realised it was a scam.
The bank refused to reimburse her, saying nothing about the transactions suggested a scam, but offered $500 for the delay in responding to her complaint. Sienna rejected this offer and asked us to investigate.
Our investigation
We could find nothing about either the purchases themselves or the phone calls with Sienna that would have alerted the bank to suspect a scam. If a bank did detect warning signs, called a red flag, it must make enquiries about the intended transaction and, if warranted, warn the customer about a possibility of a scam. However, we could find no such red flags.
Sienna had signed the disclaimer form confirming everything was legitimate. The purchases were in small amounts through legitimate cryptocurrency companies – none of which was unusual or cause for suspicion. Furthermore, nothing in what Sienna told the bank about the transactions suggested a scam.
Outcome
Sienna accepted the bank's offer of $500 for the delay in responding to her complaint.
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