Verification questions breached no duty or obligation to customer

Categories:

Service problems, Advice & information, Bank accounts,

Summary:

Georgia was an older person and a long-standing customer of the bank. In August 2025, she called the bank to discuss her statements. However, she was unable to pass the bank’s identity verification questions during the call. Georgia said the staff member she spoke to had a thick accent and was hard to understand. She also said the first question would have been difficult for any customer to answer. Georgia said the experience made her feel like a scammer, and she had lost access to online banking after failing to pass the bank's questions. She asked us to investigate.

Published:

April 2026

Our investigation

Banks must keep customer information secure and verify the identity of customers to prevent fraud. When Georgia called the bank, it used its standard manual verification process, which was to ask to four questions, only one of which could be unanswered or answered incorrectly. Staff had no ability to change the questions or exercise discretion. In Georgia's case, the staff member asked three questions, two of which she could not answer. The first question, about when she opened a specific account, was a difficult one, and it was unlikely most long-standing customers could answer it. However, the other questions were not difficult. Contrary to what Georgia asserted, she did not lose access to online banking after failing the verification process.

We found the bank's verification process did not breach a duty or obligation owed to Georgia. However, we suggested the bank review its verification policy and questions, having regard to its Code of Banking Practice obligation to do its best to meet the needs of older and disabled customers.