CAB Scammers drained my bank account
I have been the victim of fraud. I received a phone call from my bank’s phone number about suspicious account activity and asking me to go to my online banking and take steps so they could quickly freeze my account. I confirmed my details at it seemed urgent, but something didn’t feel right, and when I called the bank back they found that £3,000 had gone from my account. I feel really stupid but it seemed so genuine. The scammer even used the same background music as my bank, and passed me on to their manager who seemed very knowledgeable about my details. My bank has told me that I won’t get any money back as I was at fault by confirming information. What can I do?
There has been a significant increase in scams of this kind recently, and the methods used by scammers are really convincing. Often scammers have already “stolen” information about their target and this makes them very convincing.
The first thing to do in all cases where you have been scammed out of money ( after informing your bank) is to make a report to the police by phoning 101. (Action Fraud used to be the first port of call, but no longer take reports for Police Scotland.) Keep a note of the crime reference number they give you as you’ll need this.
Whether you have the right to get your money back from the bank depends on the specific details of the fraudulent action.
For example bank transfer scams or “push payments” are quite common.
This is when cybercriminals deceive people into sending them money. Typically the victim is told that their account is at risk of being hacked and they must transfer the money to a ‘safe’ account.
Because the victim believes the fraudster to be genuine, they authorise the payment.
Banks have no legal duty to give refunds for this type of fraud but some banks have now signed up to a voluntary code covering authorised “push payments” so may yet offer a refund.
If you have been a victim of this type of fraud and your initial conversation with the bank seemed unhelpful, it is worth getting back to them or raising a complaint. Maybe this happened to you a while ago.
You have six years to complain to your bank about a disputed transaction. If your bank throws out your complaint you then have six months from the date you receive its final rejection letter to refer your case to the Ombudsman.
Your bank may be able to pay you all of your money back after investigating your circumstances. ( You might also ask if the “chargeback scheme” applies.) Banks tend to refuse to refund scam victims on the grounds that the customer authorised the payment or was reckless with their banking details.
This can seem unfair, especially where the scammer mimicked the bank almost perfectly.
If your bank refuses to try to get your money back after you have complained to them then you can contact the Financial Ombudsman Service.
They have powers to order a bank to pay back victims of fraud. You can submit a complaint online or by calling them on 0800 023 4567. Due to coronavirus, their lines will be busy at times so it is advisable to email them or make a complaint online. We can help with submitting complaints to the Ombudsman.
Where banks cannot prove a customer acted with gross negligence when giving out information or passcodes, the Ombudsman should rule it is ‘fair and reasonable’ that you are refunded the full amount stolen, plus interest at eight per cent.
However, bear in mind that not all fraud victims will get their money back. To be eligible for a refund, you must not have made the payment yourself.
This means you never requested to transfer the money and were instead tricked into handing over personal details that enabled someone else to make the payment. You’ll have to show that you never intended to make the payment from your account.