Age and Sydney Morning Herald As revealed earlier this year, the big banks have firmly opposed any change to the ePayments Code (which outlines consumer protections for customers of banks and other financial institutions) that would trap banks for fraud losses.
At the heart of the debate is the definition of “authorized payment”. Consumer associations argue that these payments, although made by the customer, cannot be considered authorized as they were made under duress.
In the UK for comparison more than 90 percent of banks have now agreed to compensate customers tricked by criminals into making identity theft payments. By increasing banks’ liability for these losses, regulators and lawmakers hope the industry will invest in improving technology and defenses to prevent fraud losses from occurring in the first place.
Box complained internally to NAB but says the investigation was “one-dimensional” and ignored the fact that a NAB trademark number was used. Ultimately, the NAB determined that there was “no NAB error in the process” and efforts to recover the funds had failed.
“There was no occasion on which the NAB could have intervened to prevent your loss,” the NAB said in a June 6 letter.
Box has now filed the complaint with the Australian Financial Complaints Authority (AFCA), arguing that NAB’s failure to warn customers about this type of fraud makes them complicit.
“I contend that NAB has turned a blind eye and failed to take adequate steps to inform, protect and educate me about the risk of this type of fraud. Since April, NAB has failed to warn me and all NAB customers about spoofing,” Box said.
“I’ve been with NAB since 2004. I’ve had calls from NAB’s fraud team before. I have no reason to distrust the NAB brand number. Why would I think this number would get hurt?”
The NAB offered to settle the matter for $2,500, then $3,000, then $5,000 over several months, Box said, but she declined the payment to speak out and raise awareness that the banks agree after not protect the customers.
“I’m lucky in the sense that I have money and I’m not screwed financially, although that’s a huge amount of money,” she said. “But I keep thinking — how often does that happen to people who have that all about them?”
In a statement, a spokesman for the NAB Group Investigation and Fraud Team said he could not comment on individual cases, but said there had been a significant rise in scams in recent years.
“It is staggering to see the devastating impact this can have on the victims involved. The prevalence of fraud highlights a society-wide problem and we all have a role to play in taking action, advancing education and raising awareness,” the spokesman said.
However, the statement did not address how many NAB customers were specifically affected by caller ID spoofing. NAB said it held 70 free customer training sessions last year, and the bank recently hired more than 80 people to join its cybersecurity team.
“Regarding phishing scams, NAB will never ask a customer to confirm, update or disclose personal or banking information via a link in a text message or email. We will never ask a customer to transfer money to another account to keep it safe,” the spokesman said. “If anyone is unsure whether the person contacting them is from NAB, they should hang up and call NAB on the number that is on the back of their card.”
Box is now determined to escalate the complaint to the Ombudsman in the hope that banks will improve their handling of fraudulent losses and complaints.
“The Code of Conduct for Banks speaks of integrity, trust, trust, transparency and accountability. None of that is happening. they turned you off It’s mentally exhausting. Totally exhausting,” she said. “My hope is gone with the NAB.”
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https://www.smh.com.au/business/banking-and-finance/utterly-exhausting-nab-customer-feels-ignored-after-losing-35-000-20220925-p5bksr.html?ref=rss&utm_medium=rss&utm_source=rss_business NAB Client Feels Ignored After Losing $35,000