Nothing about transactions gave bank cause to suspect a scam

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Nothing about transactions gave bank cause to suspect a scam

Categories:

Fraud & scams,

Summary:

In early 2024, Hector clicked on an advertisement for an investment site he saw on Facebook promising significant and swift returns on investments. Someone claiming to be from the investment site called and a month later persuaded him to transfer $4,900 to an international money account, followed by a further $9,000 into the same account. Hector authorised both transactions via internet banking. In June, Hector asked to withdraw his money from the investment site but received no reply and became suspicious. He called the bank, which tried without success to recover his money. Hector complained that the bank failed to prevent the scam or stop the payments.

Published:

March 2025

Our investigation

We found the bank had no way of knowing or suspecting the payments were part of a scam. Hector had authorised both payments using his own internet banking credentials. They were routine and unremarkable transactions. The bank was obliged to make inquiries if it suspected a scam, but there were no warning signs of a scam. We told Hector the bank had no obligation to monitor his transactions. Rather, it was required to carry out his instructions to transfer money, which it did.