Beyond Bank Australia required to compensate multiple clients for scam losses
In three separate AFCA decisions, Beyond Bank Australia was found liable to three different customers for failing to prevent their clients being scammed. In each case the Banks clients received calls from a third party (scammer) who had spoofed the bank’s genuine phone number and was impersonating the bank’s fraud department. In each case the scammer told the Bank’s client to provide them with a passcode so that they could prevent a suspicious transaction from proceeding.
In three separate AFCA decisions, Beyond Bank Australia was found liable to three different customers for failing to prevent their clients being scammed.
In each case the Banks clients received calls from a third party (scammer) who had spoofed the bank’s genuine phone number and was impersonating the bank’s fraud department. In each case the scammer told the Bank’s client to provide them with a passcode so that they could prevent a suspicious transaction from proceeding. Unfortunately the passcodes allowed the scammer to make transactions from the clients account of almost $50,000.
AFCA looked at the application of the ePayments Code and determined whether the clients had authorised the transactions. If AFCA determined that the clients had authorised the transaction then the Bank would not be liable. However, if the customer was able to show that it was more likely than not the disputed transactions were unauthorised, the bank will bear liability for the losses unless the bank can show the complainant contributed to their loss by, for example, breaching the passcode security provisions of the Code.
Interestingly AFCA held that was not fair or reasonable to characterise the clients disclosure of the passcodes as “voluntary‟, in circumstances where they held an honest and reasonable belief they had to read them back to her bank to protect the security of her account. Therefore, AFCA held that the clients did not act in such a way that contributed to their loss and awarded each client back the amounts they were scammed.
FDL support AFCA’s findings and is an important victory for people who have been subject to scams. If you have been the victim of a scam and require assistance bring an AFCA complaint contact FDL. We are experienced in helping scam victims recover compensation against Banks. You can contact us online, call us on 1800 433 533 or email us at enquiry@fdlegal.com.au
https://service02.afca.org.au/CaseFiles/FOSSIC/924564.pdf
https://service02.afca.org.au/CaseFiles/FOSSIC/932870.pdf
https://service02.afca.org.au/CaseFiles/FOSSIC/934078.pdf
