Following Simple Steps Can Thwart Scammers, Says Banking Ombudsman

The Banking Ombudsman is urging bank customers to take more steps to protect themselves from scammers as her scheme comes across more and more easily avoidable scams.

Nicola Sladden said her experience was that many victims were thoroughly convinced of the legitimacy of the person to whom they intended sending money, particularly in the case of investment and romance scams.

"Often, they have met the individual online and have developed what they considered a personal connection with that person - thanks to scammers’ increasingly sophisticated manipulation techniques.

"We’ve seen cases where the scammer’s deception could have been unveiled, but the victim didn’t know what to check for. However, the good news is that following some simple steps can thwart scammers."

As well as the standard advice in its Quick Guide on scams (see here), the Banking Ombudsman advises looking up the person or entity you want to send funds to, and listening to any warnings.

1. Image search online romantic partners

In one recent case, Fred- complained that his bank would not allow him to make international transfers to Jessica, a woman in the United States with whom he believed he had a genuine relationship. The bank had clear evidence Jessica was not who she claimed to be. When it looked up photos of "Jessica", it found they matched a woman with a different name living in another country.

An online image search will show if the image has been used elsewhere - a strong indication scammers have created a fictitious person.

"In this case, the bank’s fraud investigator went above and beyond the call of duty to demonstrate the scam to Fred. He remained convinced, but we applaud the bank’s actions in unveiling the scam."

2. Listen to bank warnings

In another case, Malia- complained that her bank did not stop her from transferring her money to a cryptocurrency trader. But the bank had noticed the unusual transactions and queried them with her. When Malia said she was transferring funds to a cryptocurrency trader, the bank warned her that fake traders were about, and said she should ensure she was dealing with someone genuine. Malia chose to proceed but later complained when she realised it was a scam.

"It is vital customers take warnings from their bank seriously. If your bank mentions any concerns about fraud or scams, we recommend you act with extreme caution."

3. Look up reviews and warnings about investment platforms

In a third case, Raymond- transferred money to an online platform via a New Zealand-based cryptocurrency trader. Raymond had made the payments himself through his mobile banking without the involvement of any bank staff. The platform was fake, and Raymond lost all his money. He thought the bank should have warned him of the risks of buying cryptocurrency.

"Sending funds to a cryptocurrency trader isn’t, in itself, indicative of a scam. Many people legitimately invest in crypto," said Ms Sladden, "but bank systems can’t catch all scams so customers must remain vigilant about protecting their own interests."

Search engine results for the company Raymond had invested with showed numerous warnings about it being a very sophisticated scam. If Raymond had looked up the company before transferring his funds, he would probably have realised he was taking a very high-risk step.

The Banking Ombudsman also recommends checking whether the investment platform appears on the Financial Markets Authority’s list of scams - or on similar lists for the regulator of the country where the company is incorporated.

Read the case notes for Fred, Malia and Raymond on the scheme’s website:

Bank’s scam concerns justified restricting customer’s services

Bank gave adequate warning of crypto-scam risks

Bank had no reason to suspect funds were going to fraudster

-not real names

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