Simple email trick could cost you $50,000 as couple shares horror story
- Replies 7
Renovating a dream home should be a time of excitement and anticipation, not a financial and emotional nightmare.
But for one Melbourne couple, what began as a joyful project to restore a 1920s bungalow quickly turned into a devastating ordeal that cost them $50,000 and left them questioning the systems meant to protect them.
Kathy Winton and Mark Richter, like many Aussies, took out a construction loan with ANZ to help fund their renovations.
Everything seemed to be going smoothly—until a single, seemingly innocuous email changed everything.
Unbeknownst to them, scammers had intercepted an email from their builder and inserted fraudulent bank account details into the payment instructions.
When Kathy and Mark submitted a paper form to ANZ for the first payment, the funds were sent straight into the hands of criminals.
To make matters worse, a second email—again, appearing to be from the builder—arrived just 11 days later, requesting another change to the bank account details for the next progress payment.
This time, ANZ noticed discrepancies in the instructions and invoice, but the issue wasn’t escalated to their scam team.
It was only after three weeks, when the couple themselves spotted something odd about the builder’s email address, that the fraud was uncovered.
The impact on Kathy and Mark was profound. Not only were they dealing with the stress of a major renovation, but they were also supporting their two children and coping with Mark’s father’s declining health.
'It took a real toll on us emotionally and psychologically,' Kathy shared.
'As a public servant, I work to improve the lives of young people, and this experience has been incredibly demoralising.'
Their frustration was compounded by what they saw as a lack of urgency and compassion from their bank.
Despite clear warning signs—such as the first fraudulent account being registered with a different bank in Tasmania, while their builder banked with Westpac—no immediate action was taken.
Even when the builder eventually confirmed the fraud, the stolen funds had already been whisked away.
Kathy and Mark’s experience highlights some worrying gaps in the banking system. Despite transferring $75,000 of their own funds to the correct builder via secure online transactions, the paper-based process for the construction loan lacked basic safeguards.
There was no multi-factor authentication, no direct verification calls, and no way to lock in or verify BSB and account details.
'This paper-based process is really archaic,' Kathy said. 'Other banks have more robust checks in place.'
Mark was equally frustrated, especially when the bank seemed to shift the blame onto them for a minor error on the payment form.
'It could have been the opportunity to stop the payment. Some kind of check and balance, which was mostly absent throughout the whole ordeal,' he said.
Sadly, Kathy and Mark are far from alone. In 2024, Australians lost a staggering $152.6 million to payment redirection scams, up from $91.6 million the previous year.
This type of scam is now the third biggest in terms of losses nationwide, and older Australians are often targeted due to their life savings and trust in established institutions.
The couple’s attempts to report the fraud were met with further frustration. While overseas, they struggled to reach ANZ’s international number, spent hours on the phone being transferred and disconnected, and were ultimately offered just $750 as a 'goodwill gesture.'
Their case was closed without notice, and when they escalated the matter to the Australian Financial Complaints Authority (AFCA), the preliminary decision sided with the bank.
Kathy and Mark’s story is a sobering reminder that even the most careful among us can fall victim to sophisticated scams.
The Australian Prudential Regulation Authority (APRA) recently accepted a court-enforceable undertaking from ANZ to address 'systemic weaknesses' in its risk management and culture.
Have you ever been targeted by a scam, or do you have advice for others on how to avoid falling victim? Share your stories and suggestions in the comments below.
Read more: 'There needs to be some accountability': Man's 'horrible' mistake costs him $20,000
But for one Melbourne couple, what began as a joyful project to restore a 1920s bungalow quickly turned into a devastating ordeal that cost them $50,000 and left them questioning the systems meant to protect them.
Kathy Winton and Mark Richter, like many Aussies, took out a construction loan with ANZ to help fund their renovations.
Everything seemed to be going smoothly—until a single, seemingly innocuous email changed everything.
A Melbourne couple lost $50,000 to scammers after fraudulent bank account details were used for their construction loan payment, with the scam slipping through ANZ’s paper-based processes. Credit: Depositphotos
Unbeknownst to them, scammers had intercepted an email from their builder and inserted fraudulent bank account details into the payment instructions.
When Kathy and Mark submitted a paper form to ANZ for the first payment, the funds were sent straight into the hands of criminals.
To make matters worse, a second email—again, appearing to be from the builder—arrived just 11 days later, requesting another change to the bank account details for the next progress payment.
This time, ANZ noticed discrepancies in the instructions and invoice, but the issue wasn’t escalated to their scam team.
It was only after three weeks, when the couple themselves spotted something odd about the builder’s email address, that the fraud was uncovered.
The impact on Kathy and Mark was profound. Not only were they dealing with the stress of a major renovation, but they were also supporting their two children and coping with Mark’s father’s declining health.
'It took a real toll on us emotionally and psychologically,' Kathy shared.
'As a public servant, I work to improve the lives of young people, and this experience has been incredibly demoralising.'
Despite clear warning signs—such as the first fraudulent account being registered with a different bank in Tasmania, while their builder banked with Westpac—no immediate action was taken.
Even when the builder eventually confirmed the fraud, the stolen funds had already been whisked away.
Kathy and Mark’s experience highlights some worrying gaps in the banking system. Despite transferring $75,000 of their own funds to the correct builder via secure online transactions, the paper-based process for the construction loan lacked basic safeguards.
There was no multi-factor authentication, no direct verification calls, and no way to lock in or verify BSB and account details.
'This paper-based process is really archaic,' Kathy said. 'Other banks have more robust checks in place.'
'It could have been the opportunity to stop the payment. Some kind of check and balance, which was mostly absent throughout the whole ordeal,' he said.
Sadly, Kathy and Mark are far from alone. In 2024, Australians lost a staggering $152.6 million to payment redirection scams, up from $91.6 million the previous year.
This type of scam is now the third biggest in terms of losses nationwide, and older Australians are often targeted due to their life savings and trust in established institutions.
The couple’s attempts to report the fraud were met with further frustration. While overseas, they struggled to reach ANZ’s international number, spent hours on the phone being transferred and disconnected, and were ultimately offered just $750 as a 'goodwill gesture.'
Kathy and Mark’s story is a sobering reminder that even the most careful among us can fall victim to sophisticated scams.
The Australian Prudential Regulation Authority (APRA) recently accepted a court-enforceable undertaking from ANZ to address 'systemic weaknesses' in its risk management and culture.
Read more: 'There needs to be some accountability': Man's 'horrible' mistake costs him $20,000
.png){kind=icon}
