Spotlight on fraudulent activities at banks

THE Reserve Bank of Fiji (RBF) is concerned with fraudulent transactions by commercial bank staff members, including tellers and supervisors and the reluctance of the banks to accept liability.

In its 2021 Quarter 1 Complaints Management Bulletin issued last week, the RBF said 50 per cent of complaints escalated to the RBF during the quarter were bank-related, concerning fraudulent withdrawal, dormant accounts, fees charged on transfer of funds overseas and the bank loan recovery process.

“Upon investigation, the RBF determined that a number of these complaints could have been resolved at institution level as they were mainly due to unsatisfactory customer service by frontline staff,” it said

“One case related to an elderly customer who discovered a substantial reduction in her account balance even though she had not made any withdrawals herself.

“Upon complaint to the relevant bank, an internal investigation was undertaken and matter was reported to the police. Two former bank staff have been charged by the police and the matter is before the courts.

“The second case related to an ATM withdrawal matter which has also been reported to the police.”

The RBF said it also noted an increase in complaints relating to dormant accounts mainly belonging to customers such as sugarcane farmers or those who use their accounts only for savings and do not make withdrawals.

“The concerned bank has agreed to create awareness for customers on how to keep their accounts from becoming dormant.”