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A man who lost $ 30,000 from his bank account after someone saw him enter his PIN number at a bar is being used as an example of the need to be careful with cards this summer.
Banking Ombudsman Nicola Sladden said it was important for people to be cautious when shopping and on vacation, in addition to being wary of online scams.
He pointed to the case of the man, who was away from home on business and used a non-bank card to buy drinks at a bar.
The person who saw him enter his PIN number assumed he used the same PIN on other cards and went on to spend $ 30,000 on his bank card.
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At first, the bank did not compensate him because he said he had disclosed his PIN and contributed to the loss. He took his complaint to the Ombudsman earlier this year.
Sladden’s office disagreed with the bank; she said he did not know he was being watched and that he had been reasonably careful. Plus interest was refunded.
Sladden said people shouldn’t let their guard down when unwinding during summer break and should protect their pin numbers when they enter.
“If your card is lost, contact your bank immediately. Under the Code of Banking Practice, banks are required to compensate customers for unauthorized transactions unless customers have breached the terms and conditions of their card or have not taken reasonable steps to protect their bank details. “
Card complaints accounted for 13 percent of all cases referred to the banking Ombudsman last year.
Robyn Edie / Stuff
Check who’s watching when you enter your PIN number.
Anyone who takes full advantage of Boxing Day and New Year’s online sales should also beware of scammers, he said.
“Complaints about scams are on the rise,” Sladden said. “Last year we received over 370 complaints about scams and fraud, and that’s just the tip of the iceberg. When shopping online, use your card only at trusted sites. Beware of random text messages such as fake package delivery text or emails requesting login details, pins, or passwords. Before clicking on the links, stop and think, is this for real? “
If you’re using your downtime to make new connections or search for investment opportunities, take extra care.
While banks have a general obligation to reimburse clients for unauthorized transaction fraud, sometimes, as in the case of romance or investment scams, clients authorize payments that they later regret.
“In these cases, we consider whether the bank acted with reasonable care and skill,” Sladden said.
In one case he dealt with, a man transferred $ 43,000 to a woman’s account abroad and told the bank that she was a trusted friend, not to mention someone he met on a dating site.
In another case, a couple lost their life savings to an investment scam when they told the bank that the $ 100,000 was for the family.
Sladden said a bank could not warn its clients about something it was not aware of.
He said people should also remember that payments would not be processed on holidays.
“If you make or expect a payment during the holidays, check the closing times with your bank. Payments to other banks are not processed on weekends or holidays. Payments made on non-business days will be processed the next business day. “
