Scam-related bank complaints predicted to rise

media release – 8 January 2015

Scam-related bank complaints predicted to rise – Banking Ombudsman

Banking Ombudsman Deborah Battell predicts complaints to her office about scams will increase this year and has put out a guide to help bank customers avoid getting caught up.

“Scams are not only increasing, they’re becoming more sophisticated and audacious. It’s also harder now to get your money back because, with improved technology and payments systems, money moves in and out of accounts more quickly, limiting the opportunity to stop or reverse payments.

“Many people think banks can stop or reverse payments but the ability to do this is limited, especially if the customer has authorised the payment. They also expect banks to monitor customers’ account activity. Although banks do put considerable resources into identifying and preventing scams, they are not generally obliged to closely monitor each customer’s transactions,” Ms Battell said.

“Customers must therefore always be on guard, and be especially wary if they are being asked to send money overseas.”

To avoid getting caught out, Ms Battell suggests:

• Make sure you know who you’re dealing with. Do an internet search and look for reviews; check Consumer Affairs’ scam alert website; ask for a physical address you can check; and look the company up on the Companies register

• Check with someone independent and trustworthy before you commit to anything

• Do not give out account details or authorise payment unless the business is established and trusted

• Never accept money into your account for subsequent transfer to others

• Never give out your account passwords

• Check your accounts regularly to ensure money is only going to the right places

• Report any likely scams to your bank and Consumer Affairs via its website

• Contact your bank immediately if you suspect you have been scammed. It may be able to contact the scammer’s bank and have the charges reversed. At the least, if it knows about the scam, it may be able to protect others from being similarly scammed.

The Banking Ombudsman Scheme investigates complaints about scams. Its Quick Guide about common scams targeting bank customers has general guidance on its approach to resolving these complaints.

Other Banking Ombudsman Scheme quick guides with advice for safe banking include:

• Looking after your credit and debit cards and PINs

• Mistaken payments

• Contactless technology

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