My elderly father has had £15,000 stolen from his Santander account by fraudsters masquerading as his bank. I don’t believe Santander’s security measures were adequate for an elderly customer who is not particularly technologically competent and who suffers from epilepsy.
During the crime, he was in the grasp of an epileptic fit and his consultant neurologist has submitted a report, at the request of Santander, stating that if he was telephoned during a seizure it would be possible for him to answer questions without being aware of it.
We have asked Santander why it didn’t hold the money until it had confirmation from my father, but it has failed to answer and has declined to refund the money.
The worry about not being able to pay his bills has seriously affected his health. £15,000 is a drop in the ocean to a large bank, but to my father it is everything.
CW, Basingstoke, Hampshire
Your father was victim of a proliferating crime that can catch out even the savviest of customers. It’s known as authorised push-payment fraud because the victims authorise the transaction after being deceived by the scammers masquerading as their bank or another trusted body.
Last year nearly 44,000 people were defrauded in this way to the tune of £236m.
Victims are not automatically entitled to a refund from their bank as they are if their card or account details are stolen and misused.
Since September, the Payment Systems Regulator has required banks to take adequate steps to prevent fraud and, if they fail to do so, to reimburse victims, provided they were not unreasonably negligent with their security information.
Santander says it duly warned your father before allowing the payment to proceed.
Its fraud detection system sent a warning text and told him the payment would be suspended and he would be contacted again in an hour and asked to verify it which he did.
“We are sympathetic to the customer, but unfortunately, despite clear warnings, he authorised payments to be made to the fraudsters,” says a spokesperson.
“We were unaware of his condition ahead of this scam.”
As a last resort you could take the case to the Financial Ombudsman Service who can investigate whether Santander’s provided an adequate duty of care.
Regulators are meanwhile struggling to keep up with the scale of push-payment fraud.
This month the Financial Conduct Authority announced new rules to pressure banks into identifying fraudulent incoming payments.
From 31 January 2,019 fraud victims will be able to complain to the bank that received the stolen funds if their own bank fails to cooperate adequately and to appeal to the ombudsman if they are dissatisfied with the response. There’s no knowing whether this would have helped your father given how quickly funds can be moved onwards.
“It remains to be seen whether that will have any real impact on the amount of money consumers are able to recover,” says Ben Johnson, Finance Litigation Partner at DWF.
If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number. Submission and publication are subject to our terms and conditions
