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Bitesize Legal Case Study #1: The Online Banking Fraud

Posted on Jul 31, 2014 by  | Tags: online fraud, case study, banks, SMEs, cyber crime, financial ombudsman service,  | 0 Comments

By Neil Morrison, Associate, Financial Disputes

Please see our bitesize legal case study #1 below:

Legal Area

Online Fraud (Financial Disputes)

Client Type

Small to Medium Sized Businesses

Legal Problem

The director of a small Scottish company received a call from a man purporting to be from his bank advising him that there were some suspicious transactions on the company bank account. The man (hereafter “fraudster”) purporting to be from the bank was able to describe recent authorised transactions which made the director think it was a genuine employee of the bank’s fraud team.

The director was asked for his log-in details for the online bank account and the PIN which the fraudster said he required to access the account and take any action should the transactions be fraudulent. Once the details had been provided to the fraudster, he advised the director he would call back later to confirm everything had been resolved.

Later that evening the director checked his bank account and saw that several large transactions had been made. He called his bank who advised that nobody had called from the fraud team earlier and that he had probably been the victim of a scam. 

The bank investigated and advised the director a few weeks later that due to the director’s gross negligence they would not refund the money lost to the fraudster.

Solution

A complaint letter was sent to the Bank setting out the reasons why the director had not been ‘grossly negligent’ in the circumstances. Subsequently the director received a ‘final response’ letter from the bank giving him 6 months to lodge a formal complaint with the Financial Ombudsman Service (FOS) on behalf of the company.

An FOS Complaint was prepared and lodged. Subsequently an Adjudicator was appointed by the FOS and was in the process of reviewing the documentation when the Bank offered to refund all the money plus additional compensation for the inconvenience suffered.

Timeline

6 months from complaint letter sent to being refunded money by bank.

Result

Company refunded money lost and received additional compensation for inconvenience suffered.

Contact Us

We have expertise in online banking fraud disputes and have recovered clients' losses from their bank after they had fallen victim to vishing scams and their banks had refused to pay out.

If you have been affected by a phishing/vishing scam and your bank has refused to pay out then we may be able to provide you with the necessary legal assistance to seek recovery of your losses from you bank. Please feel free to call a solicitor within the Financial Disputes Team on 0131 226 8200.

Disclaimer: While every effort has been made to ensure the accuracy of this blog post, it is not intended to provide legal advice as individual situations will differ. No recipients of content in this blog post should act or refrain from acting on the basis of the blog post without seeking the appropriate legal advice on the particular facts and circumstances at issue from a qualified solicitor in their jurisdiction. The blog post is for general information only and is not legal advice. The law changes frequently and varies from jurisdiction and jurisdiction. No solicitor-client relationship is formed nor should any such relationship be implied. If you require legal advice, please consult with a solicitor qualified to practise in your jurisdiction.  Should you be interested in seeking our assistance with a legal matter, please contact the Dispute Resolution team on 0131 226 8200.

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