Insights for consumers
Scammers are clever. They know what to say to fool you into believing they are genuine. If you ever receive a call from someone claiming to be from your bank, ask for their details and call the bank back using the official 0800 number. Then check that what you are being told is legitimate.
Scammer targets Giselle claiming to be from the bank
Giselle*, in her 70’s, is not tech savvy. She was feeling particularly vulnerable because she had had a difficult year, with health concerns for herself and her son. Giselle’s mother had also died in the last few years, leaving her a modest inheritance.
A scammer called Giselle’s home, and sounded so familiar, that Giselle initially thought it was someone from within her community. The scammer said he worked in her bank’s fraud team and that her bank account had been compromised. The scammer said the bank recommended that Giselle transfer her money into a special account where it would be safe. Giselle had never heard of the type of account but thought that, as her bank was recommending the account, it would be safe.
How the scam happened?
At first, Giselle was dubious about the caller and asked if he was a scammer. The scammer gave her his bank staff photo and ID number, and said he would never ask her for any account numbers or PINs. This convinced Giselle that she was dealing with a genuine bank employee.
The scammer helped Giselle load software onto her phone that would allow them remote access to her bank account. The scammer then helped Giselle open the ‘special’ account that would keep her money safe. This is likely to be when the scammer gained access to Giselle’s PIN and password.
Giselle then transferred the remainder of her inheritance, $155,000, into the ‘special’ account in four instalments. The instalments were initially too much for her bank to approve, so the scammer told her to phone her bank and ask them to increase the transaction limit to $50,000. Giselle did as the scammer suggested and said the bank never questioned why she needed to increase the limit.
Giselle believed the ‘special’ account was just a holding account until the bank resolved their security issues, and she would be able to transfer the money back into her regular bank account. When Giselle later viewed her ‘special’ account, she discovered all the money had gone.
Giselle complained to the Banking Ombudsman Scheme and the Police when she discovered her money was missing.
The Banking Ombudsman Scheme suggested she contact Financial Services Complaints because Giselle’s ‘special’ account was an account with an international money transfer service. After the money left Giselle’s bank account, it was deposited into an international money transfer account that the scammer had opened in her name. The money was then quickly transferred into another overseas bank account and withdrawn, and the service was unable to recall it.
We referred the complaint to the service’s internal complaints process.
What did the international money transfer service say?
The service was sorry to hear that Giselle had been scammed. They explained that:
- they had no control over money deposited into Giselle’s account,
- money transfers are final, and
- very little can be done to retrieve funds once they have left the money transfer service.
The service referred to their website and terms and conditions, explaining that transfers are final and that the service is not responsible for loss in these circumstances. They suggested she talk to her bank.
Giselle complained to Financial Services Complaints Limited (FSCL).
What did FSCL do?
Giselle complained about the service because the Banking Ombudsman Scheme suggested this was an option, but she did not hold much hope that anything could be done. She thought the service had been used by the scammer and had not done anything wrong.
During the conversation, Giselle expressed concern that the bank allowed her to increase her transaction limit without question. We suggested that Giselle mention this to the Banking Ombudsman Scheme.
Giselle agreed to withdraw her complaint about the service, and we closed our file.
