Impersonated and Defrauded - Advice Needed

Lbluerock on 07/10/2014 - 00:33

Hi All

Sorry if there is a wall of text - I will try to explain the issue as concisely as possible.

Someone recently impersonated me at one of the Big4 banks, and took out, wait for it, more than $50k cash within 24 hours. I was alerted about it by the bank itself after the 15th time the impersonator hit the bank (mostly between 2 branches). I managed to barely stand my ground and nearly had a heart attack as it was my life savings.

Cutting to the chase, after all the investigations and info provided to me by the bank, I came to the conclusion that the bank clearly failed in its duty of care:

  1. Gave away so much money in so many transactions without even once checking the debit/credit card.
  2. Did not compare the account details with the fake driving license (which had incorrect info).
  3. Did not get a red flag or call me within the first 2 - 3 transactions

I have been going in and out the police stations giving statements and did not sleep for nearly 2 weeks, and don't know how I have gone through my job during the day (everyone including my boss noticing my lack of concentration and inability to work) while worrying about this.

I have been told by the bank late last week that they have given back all my money back (yet to check though), but I have been so shaken by this experience that I have lost all confidence in any bank.

With my health at risk and also my job at risk due to my boss having a chat to me, I need to know what rights do I have to seek compensation from the bank, if at all. I have no doubt that the bank should have prevented this happening (considering the amount, transaction count and the fact that it was in a retail branch).

Do I have any chance at all or would I be wasting my time? What else do you guys suggest? Any advice would be welcome. I have tried to search for a situation like this or a lawyer for such an issue but could not find it.

Financial

Comments

  • Stevecro on 07/10/2014 - 18:39
    +5

    This is another case of suck it up and move on…yes theres plenty of these cases about in the current 'what am i entitled to' first world. The bank got your money back (as they do in 99.9% of cases) its not their fault you over reacted. Be grateful you got your money back in full rather than looking for what more you can seek. Lifes too short.

  • [Deactivated] on 07/10/2014 - 21:49

    OP, something similar happened to my SIL. Her flatmate stole her passport, went to the bank and withdrew $2,000 from her CBA account. They are not related and don't alike, other than they both have brown eyes, black hair and olive skin. I can't remember if she got the money back but she did get her passport back.
    Anyway , what I'm saying is do not discount the fact that the person who impersonated you could be someone close to you. Move your money to another bank , one that requires a verbal password and be careful who you trust.
    Edit: Actually move it to ubank, their interest rate is the highest atm.

  • Azn310 on 07/10/2014 - 22:34

    Learn from it OP, dont put all the eggs in one basket, have multiple accounts, and saving accounts. That lessens the chance of you losing everything in one go. There are so many ways you can avoid this from happening again.

    Sueing the bank would probably be a waste of time IMO. Stay positive.

  • isthisreally_me on 07/10/2014 - 23:57
    +1

    OP if story is actually legitimate, the bank has reimbursed you fully, im quite sure you dont have much of a legal standing for anything more. If you dont trust the bank move to another one. My bank offers the option of extra ID on withdrawals, I'm sure other banks would offer similar options
    as well if you shop around.

    • bluerock on 12/10/2014 - 21:35

      Thanks mate. May I ask what bank you use? Does it have the option of extra ID over the counter? Also does it actually enforce it in your opinion?

  • IMBI3 on 08/10/2014 - 01:01

    Check your money, withdraw and open another account at another bank just in case you got hit again by the same person

  • apey2000 on 08/10/2014 - 01:12
    +16

    Better get a lawyer son, and better be a real good one!

    On a serious note.. given your adverse emotional and physiological reaction to the experience of temporarily losing $50K on paper, if you go down the legal path of seeking compensation from the bank be prepared for an extended period (a lot longer than 2 weeks, I can assure you) of symptoms of disrupted sleep, loss of concentration and poor work performance.

    Your boss will probably sack you! Your lawyer will probably financially rape you! Your bank's lawyer will probably dismiss your case on the very basis that by going down the legal path you were voluntarily willing to put yourself through the exact same emotional stress that your are seeking financial compensation for! You will end up a bitter, unemployed man with less money in your bank that you started out with.

    Don't do it. Instead spend a couple of hundred bucks and go fishing for a weekend somewhere. Then come back and tell us all how good it was and what you caught (hopefully no crabs)!

    • itsdanthaman on 08/10/2014 - 19:42

      apey75, best advice, pretty much nailed it

    • bluerock on 12/10/2014 - 11:01

      Thanks :) it does make sense and I realise it may not be worth it eventually.

  • [Deactivated] on 08/10/2014 - 01:12

    Close the account straight away and open a new one. Make sure your identity is safe i.e. your mail, your garbage. Consider getting a shredder and a PO box. Make sure your new account requires two step authentication, i.e. pin number and reply to sms.

    Don't just rely on the bank giving your money back, they might not be so happy about it the 2nd time.

    Although TBH 9/10 it's a relative or someone close to you.

    • bluerock on 12/10/2014 - 11:05

      Thanks for the advice. However, this is what I want to know: which banks are offering 2 step authentication over the counter? None in my experience. Unless you tell me which one, all of them say the same thing i.e. if your ID has matched our details, we hand over everything in your account. No option for calling/sms/or checking other forms of ID. They say they will put it in notes but do not promise if the teller will actually look at these.

  • [Deactivated] on 08/10/2014 - 05:14

    If you are serious about thinking you are entitled to compensation, then that is a question that you need to speak to a lawyer about.

    You would be lucky to squeeze even $200 out of them. In fact, your best chance is to extract the "Bank Error in your favour, collect $200" card from a Monopoly set and hand it to the bank manager dealing with it, and he might actually give it to you for the humour aspect.

    When it comes to lax security at bank branch, my personal suspicion based on my own experience is that this probably happened at the Commonwealth Bank.

    Some banks particularly branchless ones are very strict with security - SMS/Token codes, postal verification, scan ID at post office, the works.

    • bluerock on 12/10/2014 - 11:09

      Haha! I have found getting a lawyer who does this kind of thing (and is wiling to only take his fees out of the compensation) is not easy. At the end of the day, it may not be actually worth it. Better off just asking the bank. However, I am very interested about the banks which are very strict with security. Can you give me some names?

  • [Deactivated] on 08/10/2014 - 06:50
    -3

    What's all this got to do with bargains?

    • StewBalls on 08/10/2014 - 07:40
      +20

      Well, somebody got a free $50k…

      • [Deactivated] on 09/10/2014 - 10:06

        I hope they buy us all bee keeping suits!

        • StewBalls on 09/10/2014 - 10:09
          +1

          With the worldwide honey shortage…hell yeah! ;)

  • gentlecrack on 08/10/2014 - 07:14

    Why not try to talk to the bank authorities and mention about taking this to the press, to see what their take is.

    I'm sure they won't be happy with the bad publicity and might like to settle it outside media.

    • ozhunter on 08/10/2014 - 13:37
      +2

      I'm sure they won't be happy with the bad publicity and might like to settle it outside media.

      Could be good for them when people see that the banks will replace the money.

  • nicksinternet on 08/10/2014 - 07:58
    +1

    You got nothing on them now , they have made good.

    My suggestion, name the bank here, and change banks asap.

  • pippin88 on 08/10/2014 - 09:21

    That this happened is very unfortunate.

    I very very heavily suggest that you do not seek compensation. It will be a drawn out process with a lot of expense involved.
    Compensation is a risk factor for disability - to get compensation you have to be disabled in some form, and this can be a self fulfilling prophecy. The need to be disabled results in you becoming disabled.

    I also suggest everyone shred everything they get with more than their name on it. Be careful what you post online also.
    Many organisations have shit security, for instance Telstra was using date of birth as their main check - don't have your DOB on Facebook.

    • gimme on 08/10/2014 - 12:51
      +1

      LOL, you need to be disabled to get compensation?? I think you have your compensation types mixed up. This isn't a 'compo' claim in the colloquial sense.

      Note to self - Never ask these types of questions on a 'bargain website' (or any public forum for that matter), well you'll get bargain advice.

      • pippin88 on 08/10/2014 - 13:21
        +4

        Well he is hardly going to get financial compensation seeing as the bank is covering the money…

        So the compensation he'll be looking for is for distress and suffering. You will only get that if the situation has affected your life, not just made you fret for a couple of days. So he would have to demonstrate some sort of impairment/disability resulting from this situation, be it anxiety, depression etc.
        (nb. disability has a much broader meaning than physical incapacitation such as paraplegia)

  • biozet on 08/10/2014 - 09:36
    +1

    chill out and buy a bargain.

  • humdogg on 08/10/2014 - 15:05
    +1

    plot twist: impersonator was op's twin brother.

  • dealman on 08/10/2014 - 15:36

    Guys, just so you know, Commbank has a system of Alerts where you can subscribe to a weekly alert SMS of your Balance.

    • gentlecrack on 08/10/2014 - 22:33
      +2

      I have been working on IT transformation programs for financial majors across the globe for more than a decade, and I am sorry to say, but the banks in Australia are at least 5 years behind US or UK banks in terms of technology. And security. Can't believe the fact that there are so-called big4 banks still operating without provision for secondary authentication, grid based security for cards, unlimited alpha numeric characters for password, sms facility for any transactions over customer-set limits etc. I mean, these are facilities offered by even the smallest of banks in countries such as India,let alone US or UK.

      • dealman on 09/10/2014 - 12:09

        imho India is way ahead of Aus in Banking, mainly because they have had to fraud is much more prevalent there.

        I was dining with an Indian friend once when he paid the bill and before the waiter could bring back the bill he got an SMS on his phone with the amount charged on the card.

        Also in Aus afaik CBA has been using 2 factor Auth for a long time.

        ANZ use SMS for transactions over limits,

        • bluerock on 12/10/2014 - 11:17

          I bet none of these banks have 2FA for over the counter transactions. I have checked all of them but if you are sure, please let me know and I will double check and move my funds there. The most they offer you is putting your request in our notes and hope the teller sees them before handing out your cash to a fraudster. Also, the weekly SMS of my balance is no good as I dont need to find out after a week that my balance has disappeared. Instead, I need something that can prevent this and banks need to accept responsibility. I agree we need to maintain our privacy by shredding details etc, but what good is a bank for then?

  • JordanM on 08/10/2014 - 19:01

    I would start by making a formal complaint and mentioning if you are unsatitsifed with their response you will contact the Financial Obmudsmen Service (http://www.fos.org.au/)

    Should get them to move faster, if nothing else. Obviously consider complaining to the ombudsman if they take too long.

  • poppit88 on 08/10/2014 - 20:17

    Please, at the very least, report this to the police or at the very least report it online at Crime-stoppers.

    • OneJay on 08/10/2014 - 22:05
      +1

      Well, at the very least, they've reported it here at OzBargain.

      • Baysew on 10/10/2014 - 08:59

        Now we just need a poll, then we can set the OzBargain Bikies on to them.

    • bluerock on 12/10/2014 - 11:18

      Its with the police from day one.

  • horseshoe on 08/10/2014 - 22:51
    +1

    bluerock I am going to give you some investment advice, because leaving $50k in a bank account that's earning no interest at all is crazy.

    If you are with Commonwealth, open a NetBank Saver account:
    https://www.commbank.com.au/personal/accounts/savings-accoun…
    If you are with Westpac, open an eSaver account:
    http://www.westpac.com.au/personal-banking/bank-accounts/sav…
    If you are with NAB, open an iSaver account:
    http://www.nab.com.au/personal/accounts/savings-accounts/nab…
    And finally if you are with ANZ, open an Online Saver account:
    https://www.anz.com.au/personal/bank-accounts/savings-accoun…

    All of these are easy, online savings accounts that you can link with your existing transaction account. You cannot withdraw money directly from them, only transfer money to and from the linked account.
    Once you have opened an account, transfer all your money into the savings account. Transfer money back to the transactions account whenever you need to withdraw money/pay a bill.

    Now you can only be defrauded if someone hacks your internet banking password.

    • DarwinBoy on 08/10/2014 - 23:36

      And if I remember correctly With a CBA netsaver account you have to transfer that yourself to your everyday account for the teller to withdraw therefore adding a secondary level of protection.

    • [Deactivated] on 09/10/2014 - 16:41

      thats at the very very least. 1k a year. Enough for a week away at a cheap destination to take all your stress away.

    • bluerock on 12/10/2014 - 11:23

      My money was in one of the above mentioned "savings" accounts earning their maximum possible interest rate. I'm sorry again as I dont wish to name the bank unless I move forward with the complaint, but apparently, money can be withdrawn from their savings account without the need to use internet banking to put it into the transaction account, and that is what has happened. I only found that out after I discussed the whole crime with the bank's fraud investigator. All the customer needs to say is I need money and I dont have time to do the internet banking, and they will just hand out your cash. That is disgusting (even though there is a computer in all branches to move the money over and the bank can force the customer).

  • doowhydiddi on 08/10/2014 - 23:24

    This may have been mentioned already…for your peace of mind ask the bank and/or the police if you can view the cctv of the person who made the withdrawals from each branch. If they say no then insist on seeing copies stating that there is a chance you can identify this lowlife.

    Fingers crossed it is not someone you know, but if it is then identifying and helping prosecute them would most likely help bring some peace to your overwhelming emotions.

  • [Deactivated] on 09/10/2014 - 01:44

    Speaking of a bank's attention to detail, I have a credit card issued by Westpac with numerous spelling errors. It has missing characters and misspelled PTY LTD at the end of it. When I got on the phone with the bank (also one of the 4), they even tried to tell me it is because I gave them the wrong spelling. It's too bad all my other statements and online details are correct and ridiculing his stupidity actually showed results. I had a senior apologize frantically and promise to rectify the problem without any inconvenience to me.

    I'll still be switching banks. That's two idiots in a row. And this is not the only stuff up.

    • [Deactivated] on 09/10/2014 - 02:32

      as stupid as it sounds, (according to a mate who works there) statements, cards, merchant details and personal details all have different systems to use for names and addresses and all have to be changed independently.

  • rmamila on 09/10/2014 - 16:45

    Hey mate sorry to hear your situation. My advise to you is to let it go now as you've got your money. The more you try to think of this and fight with a big bank the more you gets frustrated and damage your mentality. Try to focus on your job now.
    However don't loose the lesson you learnt. If you can't reveal the bank (which is understandable) at least share the information as to what went wrong. How you end up in this situation. This is missing in your post. So the OZB community can learn from your mistake and they would even give you advise to protect yourself in future.
    There are unanswered questions. Did you loose your bank card? How could the impersonator got hold of your account? Did the bank/police finally catch the impersonator?

    • rmamila on 09/10/2014 - 16:52

      Don't leave your money in transaction accounts which is linked to the card. Instead move all the extra money into an interest earning account or an offset account if you have a loan. Just leave enough balance for your normal withdraw/expense for a week or so. When the amount in the transaction account go down too low you can transfer money back into it from the savings/offset account.

      This way even if you loose the card and the impersonator gets successful in getting through the bank you won't loose too much money and most importantly don't help promoting this type of robbers. You can understand this impersonator in your situation has now managed to rob a large some and built his confidence. Chances are that he will try it again once he loose all the money in gambling or wasting in some way. That's more dangerous for the rest of the society. Be careful with your money and don't help creating robbers.

      • bluerock on 12/10/2014 - 11:27

        I have answered this already in reply to horeshoe. Please see above. It was in the saving account but the bank's security is so S#it that they still let that person withdraw money directly without moving it to the transaction account.

    • bluerock on 12/10/2014 - 11:28

      These answers are unanswered for me too though I can tell you I did not lose my bank card. They withdrew money without the card.

  • shaybisc on 09/10/2014 - 19:25

    I get so many warnings whenever anything is done to my bank accounts, even transferring money to myself, it's not funny.

    Have I got this straight- you can withdraw from this bank at the branch (which bank?) without using a PIN?

    • [Deactivated] on 10/10/2014 - 16:57

      You can withdraw from any bank without a PIN as long as you've got ID. Some banks are just better at checking that ID than others.

    • bluerock on 12/10/2014 - 11:29

      Banks have various checks and smses happening when stuff is done online, but sadly, have left a big hole for over the counter transactions, and hence easily exploited by the criminal.

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