Online car purchase gave bank no grounds to suspect a scam

Categories:

Fraud & scams, Bank accounts,

Summary:

In December 2024, Parker was scammed into transferring $35,000 from his account while trying to buy a car online. The car was later flagged as stolen. He reported the fraud to the bank and police the next day. The bank tried unsuccessfully to retrieve the money. Parker complained that the bank failed to act quickly to recover the funds, did not keep him informed, and refused to reimburse him. He also questioned why the transaction was not flagged as suspicious.

Published:

January 2026

Our investigation

We found Parker’s authorisation of the payment by direct credit raised no suspicions, or red flags, that should have prompted the bank to make inquiries about the payment. The bank was not therefore obliged to reimburse his loss. We also found the bank made reasonable efforts to recover the money. It contacted the receiving bank within 30 minutes of Parker notifying it about the scam and asked for the money to be recalled. It also confirmed to Parker that it had taken this step. It contacted the receiving bank several more times, but the receiving bank eventually advised that it could not recover the money. In short, it acted promptly and communicated reasonably throughout.