Our investigation

The terms and conditions of Steven's account were clear that the bank could delay or refuse to process a transaction if this would help prevent fraud, money-laundering or other crimes in New Zealand or overseas. Steven's payment, together with his access to his internet banking, was stopped because it triggered the bank's fraud detection system. Steven's advice to the bank about his intention to buy crypto-currency did not oblige the bank to make the payment without further checks – checks it was required to carry out if it suspected the possibility of a scam. The bank made clear to him at the time that it could not circumvent  its own fraud detection system, and that its fraud team might need to speak to him before allowing the payment to proceed. We therefore considered that the bank was entitled to delay the payment while it conducted further checks. 

As for Steven’s complaint about his difficulty in contacting the bank, we found that the bank contacted him promptly after stopping the payment, leaving a voicemail for him to urgently call the fraud team about the payment. Steven received the message and called back about 10 minutes later, but ended two calls to the bank after receiving an automated message advising of a 40-minute waiting time. This was a lengthy and no doubt frustrating delay, but Steven was ultimately responsible for deciding not to stay on the line and speak to a member of the fraud team.

Outcome

We did not uphold Steven’s complaint.