‘Bank trans­fers should be as safe as credit card pay­ments’

The Daily Telegraph - Your Money - - FRONT PAGE -

when the bank was not at fault.

Joseph Kotrie Mon­son of Mary Mon­son Solic­i­tors, a spe­cial­ist in fraud cases, said he would like to see a sim­i­lar model when it came to bank trans­fer fraud to the one for credit card fraud.

He said: “The law has al­ready placed the re­spon­si­bil­ity on credit card com­pa­nies to make good losses from fraud – and the com­pa­nies mar­ket that as a rea­son to get a credit card. The same could be true for bank trans­fer fraud.”

Alan Wil­liams of Parker Fitzger­ald, a con­sul­tancy, said: “It’s still a tricky area and I’m sure there will be many people who will look for help un­suc­cess­fully be­cause for what­ever rea­son the bank has done enough. If the warn­ing was a pop-up screen, for ex­am­ple, people tend not to pay too much at­ten­tion to a pop-up.” But it could be enough to get the bank off the hook.

Most ex­perts agree that greater re­spon­si­bil­ity must be placed on the bank that re­ceives stolen money. Jack Buster, an in­de­pen­dent fraud re­cov­ery spe­cial­ist, pointed out that in many cases the vic­tim’s bank had ef­fec­tively done noth­ing wrong – beyond fol­low­ing its cus­tomers’ in­struc­tions.

When open­ing ac­counts, banks must fol­low strict “know your cus­tomer” checks de­signed to pre­vent money laun­der­ing.

In a sig­nif­i­cant move ear­lier this year the City watch­dog ruled that com­plaints could be lodged against banks even by non­cus­tomers, po­ten­tially open­ing the flood­gates for fraud vic­tims to tar­get crim­i­nals’ banks.

Joe Rid­doch, 31, from near Aberdeen, thought he’d found a bar­gain when he saw a dig­ger listed on a web­site for just over £7,500. He was un­able to view the ma­chine but, after car­ry­ing out some checks on the com­pany, he made the trans­fer.

The de­liv­ery date came and went. Mr Rid­doch re­alised he had been scammed and re­ported the crime to his bank, which in­formed HSBC, the fraud­ster’s bank.

Mr Rid­doch thought his was a lost cause un­til the po­lice re­vealed that he was one of more than 90 vic­tims of the gang. The HSBC ac­count he had paid the money into had been opened by the crim­i­nals us­ing a fake Dan­ish pass­port and a fraud­u­lent bank state­ment.

After be­ing con­fronted by Tele­graph Money HSBC agreed to pay Mr Rid­doch £8,520 – the amount lost plus in­ter­est and com­pen­sa­tion. on. HSBC said pro­tect­ing people eo­ple from fraud was a top pri­or­ity.

Joe Rid­doch lost £7,500 to o scam­mers

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.