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R20 500 lost due to bank fraudsters


A Fin 24 user, Charmaine Murray of Cape Town, was a victim of an internet bank fraud in 2010 and has never gotten her money back.

Even though the Ombudsman for banking services found that the bank had not been negligent, she still feels that the bank “did nothing” for her.

She wrote:

Before the World Cup, there was a big media drive to update and safeguard our banking details.

In response I updated my security settings on Thursday June 3 2010 on Standard Bank [JSE:SBK] Internet Banking.

After I entered the once-off password sent to me via sms to my cell, the Standard Bank web site kicked me out, which meant that I did not get the opportunity to log out of the web site.

On Friday June 4 2010 I checked my bank balance as usual. I discovered an internet banking transfer (which later turned into an ATM transaction on the statement) in the amount of R16 900 from my credit card to my current account. The transaction was done on Thursday June 3 2010.

I also discovered the fraudulent withdrawal from my current account of a R20 000 once-off payment, paid into ntshakusasa communic. I never received any email notification from Standard Bank of R500 airtime that was also stolen from my account.

I immediately went to the Milnerton Standard Bank branch to report the fraudulent transactions. They sent me to the police station to do an affidavit. On Friday 11 June I received a reply that the investigation will take between four to six weeks.

I continuously followed up with both the police and Standard Bank. Standard Bank took three months to supply the police with the details. A helpful employee at Standard Bank told me that three other transfers took place to that ntshakusasa communic account on the same day as they stole money from me as well as on the following day – June 4.

On the August 8 I received an email from Standard Bank, listing the incorrect amount that was stolen from me and informing me that it was my fault the money was stolen. They did not mention the R500 airtime that was stolen.

I did not respond to an email when I updated my security settings. I never went into emails that enticed me into giving out personal information. I cannot afford to say bye-bye to R20 500.

She took her case to the Ombudsman for banking services, who responded on August 17 2011:

The letter from the Ombudsman stated that despite her claiming that she did not respond to a phishing email, the bank repudiated her claim “based on the fact that the evidence suggests that you disclosed your confidential internet banking access credentials including an OTP to fraudsters albeit without the intention or possible knowledge at the time, of doing so”.

The Ombudsman’s letter further stated that she was a victim of phishing fraud and that the bank could not have prevented her loss.

“Your own negligence caused the loss you have suffered”, the Ombudsman’s letter stated.
 
“Although the evidence may be regarded not to be conclusive, it surely supports the probabilities and this office makes findings on a balance of probabilities,” the letter stated.

"It is clear from the general explanation given regarding phishing fraud as well as the specific facts of this matter that the bank played no part in the compromise of the your confidential internet banking access details. The evidence furthermore confirms that the bank’s system was not hacked into or compromised in any way."

The Ombudsman's investigation concluded that the beneficiary account into which Murray's money had been transferred, had complied with Fica procedures. The beneficiary was a Standard Bank account holder.
 
"There is also no basis on which a conclusion can be reached that the bank should have been aware that the account was opened by fraudsters," the Ombudsman said.

"Investigations of this nature are more appropriate for the police to investigate. The bank can only provide the account information to the police if it is served with an order of court. These accounts are usually sold for small amounts to syndicates. Based on the evidence at hand, the bank was not negligent in stopping your internet banking facility."

On queries from Fin24, Standard Bank said it had investigated the matter as well and concluded the same as the Ombudsman.

- Fin24

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Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.

Fin24 reserves the right to obtain service providers' comments before publishing any articles or letters, and to edit any material used. Fin24 also reserves the right to edit or delete any and all user comments received.


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