Bank covers half of customer’s loss after learning of memory problem

Home Guides & cases Case notes Fraud & scams - 87256

Bank covers half of customer’s loss after learning of memory problem

Categories:

Fraud & scams,

Summary:

In January 2024, Evan’s friend accessed his mobile phone and made six payments totalling $7,300 from his account. When Evan realised what had happened, he confronted his friend, who denied doing anything wrong and then began avoiding him. Evan asked the bank to reverse the transactions, but it was unable to help. Evan asked the bank to reimburse him for his loss, but it declined his request, saying he had admitted saving his password in his browser – a breach of the bank's terms and conditions.

Published:

September 2024

Our investigation

We found the bank's terms and conditions did indeed state that customers must not save their passwords, including in web browsers. Evan acknowledged having done exactly that, and on this basis had breached the bank's terms and conditions. However, in reviewing the bank's records during the time of the transactions, we noticed Evan had often called to reset his PIN or password and to ask what his customer number was. This suggested Evan might have had a memory problem. We asked Evan about this, and he said he had suffered a traumatic brain injury a year earlier and had trouble remembering things. He said this was why he saved his password in his browser. Evan supplied medical records confirming his diagnosis. We passed on this information to the bank, which agreed to reimburse half of the loss.