Grandmother with Terminal Illness Loses $32,000 in Scam
A grandmother who is battling a terminal illness claims that an Australia-based bank could have prevented a scam in real time. Lyn Reads fell victim to a scammer who stole approximately $50,000 AUD (equivalent to $32,000 USD) from her bank account, according to the Australian Broadcasting Corporation.
Reads initially received a text message that appeared to be from Bendigo Bank. When she called the number provided in the message, she spoke with a criminal who convinced her that her account was under attack. She then shared her six-digit passcode, which allowed the scammer to transfer her funds to two accounts at the same bank.
When Reads grew suspicious and realized she had been scammed, she immediately visited her local branch. A teller managed to save a few thousand dollars in her account and assured her that the bank’s fraud team would retrieve the money within two weeks. However, nine months later, Reads is still in dispute with the bank to recover her funds.
Delayed Action by the Bank
Documents reportedly reveal that it took the bank over an hour after Reads notified her local branch before labeling the involved accounts as “mule accounts” – accounts used by criminals to collect funds. Unfortunately, by that time, the money had already been transferred out of those accounts.
Reads argues that the bank should have acted more swiftly, especially since the accounts involved in the theft were also with Bendigo Bank. She believes that the highly unusual transfers from her account should have raised red flags for the bank.
“They were large sums of money and it was quite out of the ordinary for me,” says Reads.
The Bank’s Defense
Bendigo Bank, however, claims that Reads is responsible for the loss because she disclosed her passcode to the scammer.
With terminal cancer, Reads relies on the stolen money to make the most of her remaining time, spend quality moments with her children and grandchildren, and cover the costs of her own funeral.
Increasing Incidents of Bank Impersonation Scams
Last year, the Australian Competition and Consumer Commission received over 14,500 reports of bank impersonation scams, resulting in losses exceeding $20 million AUD.
Hot Take: Banks Must Prioritize Customer Protection
This incident highlights the importance for banks to prioritize customer protection by implementing robust security measures and monitoring suspicious activities. While customers must remain vigilant and avoid sharing sensitive information with scammers, banks also bear a responsibility to promptly identify and prevent fraudulent transactions. By enhancing fraud detection systems and educating customers about common scams, banks can work towards minimizing financial losses and safeguarding their customers’ funds.
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