Another year, more cases of online love ending badly

Another year, more cases of online love ending badly for the lovelorn

Bank customers who meet people online are vulnerable to fraud and theft if they fall for the wrong person, says Banking Ombudsman Nicola Sladden.

The Banking Ombudsman Scheme has just released its 2015-16 Annual Report and cases involving increasingly sophisticated online fraud and trickery are increasing, 66 bank customers contacting us about scams by third parties.

“Every year we receive complaints from bank customers duped into transferring money – usually online – to people they don’t know, and we’re unable to help them because their bank hasn’t done anything wrong as they themselves authorised the payments.

“A recent complainant met the love of his life who said she lived in Malaysia. She asked for his help by depositing a cheque for GBS30,000 into his New Zealand bank account. She told him her bank wouldn’t accept the cheque as she had no permanent address.

“Because he had to wait three weeks for it to clear, and she said she needed the money sooner, he took out a $10,000 personal loan and sent it to her via Western Union.

“The foreign cheque then bounced and he complained to us that his bank hadn’t made it clear to him that that could happen, and that it also shouldn’t have approved the loan.

“We couldn’t uphold either complaint because firstly, the bank had told him verbally it would hold the cheque proceeds until it could confirm its legitimacy, and secondly, the bank’s loan application assessment was satisfactory.

“The complainant learned the hard way that love online doesn’t always pay.”

To keep heart and finances intact online, we recommend the following precautions:
· make sure you know who you’re dealing with online
· be wary if somebody you don’t know or have met online asks you for money
· never accept money into your account for subsequent transfer
· don’t give out your password
· pause before you commit to anything you’re being asked to do and if you can, check the details with somebody you trust
· contact your bank immediately if you think you may have been scammed. It may be able to reverse charges, but probably won’t be if you authorised the payment yourself.

For more information to protect your finances on your travels see our quick guide on Common scams targeting bank customers. The 2015-16 Annual Report is available in PDF and flipbook formats.
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