In an age where digital convenience is often celebrated, the darker side of our online world reveals itself in sophisticated scams that can devastate lives in the blink of an eye.

This harsh reality hit home for a Sunshine Coast couple, Kerry O'Mahony and Kerry Littlejohn, who fell victim to a cunning bank scam that wiped out their life savings, a staggering quarter of a million dollars.

This cautionary tale serves as a stark reminder that no one is immune to the threat of financial fraud, and it begs the question: Are your funds at risk, too?

The couple's ordeal began innocently enough as they sought to maximise their returns by shopping around for the best interest rate on their term deposit.

They came across an offer from ING Australia, or so they thought, which led to a series of events that would culminate in a financial nightmare.

Sunshine Coast couple fell victim to a cunning bank scam, wiping out their $240,000 savings. Credit: Shutterstock

‘I clicked on obtain a quote, and within, I think, about a day or two of doing that, we had a phone call…from ING,’ O'Mahony said.

The purported ING employee provided them with competitive quotes, documents, contracts, and payment instructions, all adorned with the bank's official logos. However, it was all an elaborate facade.

The couple's savings were with Suncorp bank at the time, necessitating a visit to their local branch to facilitate the transfer of funds.

Despite some initial doubts, the Suncorp teller, after reviewing the emails, suggested, ‘He looked at [the emails], and then he said “yeah, it looks alright, but you know if you're really concerned, you can ring ING”,’ O'Mahony said.

O’Mahony did just that in front of the teller, using a contact number from a Google search.

‘I did a Google search for the ING contact number. [It] was exactly what I put in, and it came up: 13 34 64,’ she said.

‘It is their phone number, but I rang it, and I didn't get through to ING, I got through directly to the scammers.’

Assured by the fake ING representative on the other end of the line, the couple proceeded with the transfer.

The telltale signs of a scam were present but went unnoticed.

The account details provided by the scammers were for a Commonwealth Bank account, not ING, and the email address used was not an authorised ING email.

By the time the couple realised the scam and contacted Commonwealth Bank, their $240,000 had vanished.

‘[It was] taken out pretty much straightaway and then moved around the world through various IP addresses,’ O'Mahony said.

The pair blamed the scammers for the incident, but they also asserted that Suncorp is accountable.

‘I just felt that [Suncorp's] duty of care to us was sadly lacking,’ O'Mahony said.

O’Mahony and Littlejohn filed a complaint with the Australian Financial Complaints Authority.

In response, Suncorp Bank has stated that it is supportive and will fully participate in the external review process by AFCA.

ING and Commonwealth Bank have also released statements acknowledging the increasing sophistication of scams and the importance of educating customers on protecting themselves.

You can read Suncorp Bank’s full statement below:

This case is currently being reviewed by AFCA, the independent dispute resolution body for consumers with financial complaints.

Suncorp Bank is very supportive and will fully participate in this external review process.

Suncorp Bank understands the impact frauds and scams can have on individuals.

Alongside the banking industry, we are committed to implementing the measures outlined in the Scam-Safe Accord including account name checking for domestic payments.

If you suspect you may have been scammed, please reach out and report your experience to the ACCC: https://www.scamwatch.gov.au/report-a-scam

Key Takeaways

• A Sunshine Coast couple lost nearly $240,000 in a sophisticated scam involving a fake ING employee and counterfeit email documents.
• Despite being cautious and consulting a bank teller, the couple's call to verify the scammer's legitimacy was intercepted via phone spoofing, leading them to believe they were speaking to ING.
• The scam highlighted failings in the verification processes, as the money was sent to a Commonwealth Bank account rather than ING, a detail that was overlooked.
• The couple has lodged a complaint with the Australian Financial Complaints Authority, and all banks involved have acknowledged the need for increased awareness and prevention of such sophisticated scams.

Have you or someone you know been affected by a similar scam? What measures do you take to safeguard your savings? Join the conversation below and help us spread the word on staying scam-safe.

 

[marni]

We ha e in the past and will always send $100 to a different account. When we see that it has arrived safely through their App only then do we add any more dollars. Overseas people must be so rich from these hackers. It pays them to be inventive.

 

[JimmyFlatrock]

How else would you find a phone number besides googling it?
And the number is correct 133464.
The customer rang it not the bank employee. Not Suncorp at fault.

We were scammed exactly the same way. Contacted ING for term deposit rates. Scammers copied the website. Went to a NAB bank to transfer money, ended up going to ANZ account set up by scammers. Lost $400k. After engaging a lawyer, and many emails and phone calls later we were reimbursed a significant amount by the NAB due to their failure to do due diligence to detect a scam. We were one of the few lucky ones.

Seems to me to be strong anecdotal evidence from one who has been through the unfortunate event process that the transferring bank does have a duty of care to protect it's customers. It's not a difficult process for them to check if the training and willingness are there.

As I understand it, it's the reason why, when doing a BPay transaction to a new payee there can be a couple days delay while checks are done, especially s o if going to another bank.

The banks are the professional people who indeed should be aware of what scammers can do to their customers. Whilst I may not have transacted in that way, I think the customer in the article and Glendarowland were not completely in a position to protect their hard earned funds once they went into the banks to arrange the transfers, but the bank was and my take is that it had a duty of care to do so.

As regards the case in the article, it has made it's way to the Australian Financial Complaints Authority, so we shall see the results of that review. In the meantime, the people in the article would be wise to do the same as Glendarowland did in an effort to recover the hard earns. Good for her I say.

To say it's greed on the part of the customers is just stupid. All they were trying to do is make the best use of their hard-earns.

If I have the slightest of doubts, after I do all sorts of cross-checking, where I can I always put a toe-in-the-water with a small amount. In one instance I dropped $500 into a new organisation, watched it on line for a month (earning now 12.16%), then withdrew $250. When all was good I invested more, safe in the knowledge. If I can't do a small amount initially, then I just give it a miss.

 

[Barbara V]

Just had a scam come in this morning,this is the third time they've tried. It says it's from Woolworths to validate my account. This mornings one was in Spanish hmm are they getting desperate or just stupid

 

[Ellev]

read my reply We went to physical bank to transfer our money for safety and they still lost it. The problem with ING is there is no bank. You have to do all transactions online. That’s why they are a haven for scammers. We’ve since known many people who have been scammed the same way.

Bankwest will be next.

 

[gordon1940]

What sticks in my mind is that would any of us rely on the opinions of a teller regarding the safety of all our life savings?

However, in my opinion, the tellers initial review of the emails was insufficient. Suncorp did not do enough in the verification process, given it has a duty of care to it's customers. Suncorp should have verified the account details independently and confirmed the legitimacy of the transfer. If they did that, then it's game over for the scammers.

One could accuse the customers of not being cautious enough, but I think they were let down by the bank's poor efforts to act out the crucial role banks should follow to prevent such scams. Seems to me the tellers training or awareness was not there either and for that amount of money, he should have referred the matter to someone who gets paid for that level of responsibility. Red flags should have gone off in his mind.

Here's what I found out about phone spoofing.

1. Phone Spoofing Mechanics:
   • Phone spoofing involves using fake caller ID information to mask the true source of an incoming call.
   • Scammers often mimic numbers from reputable companies, government agencies, or familiar area codes to trick recipients into answering calls.
   • Spoofed calls can lead to phishing attempts, scams, and privacy breaches.
2. Protecting Against Phone Spoofing:
   • Don’t share your phone number or other personal data unless necessary.
   • Be wary of online prize draws and sweepstakes; read terms and conditions carefully.
   • Leave consent boxes allowing data sharing or selling unchecked.
   • Be cautious if someone asks you to transfer money to another bank account.
   • Verify phone numbers independently
   • Use strong anti-malware apps or security software on your phone.

Remember, vigilance and skepticism are essential when dealing with financial transactions. Always verify independently, especially when transferring significant amounts of money.

Well done. Everybody please note.

 

[Keswickian]

It's really scary when the number called (133 464) is the correct number according to the contact number on the ING website but went to the scammers. Any of us could have fallen for that. ING needs to investigate how that happened and check the integrity of their website.

Any time that I have large sums of money to transfer to a new payee, I always send a test run with a small amount of money, then check that it arrived correctly before sending the rest.

In this case, I think Suncorp's only responsibility was to ensue that the person withdrawing the money was indeed the account holder, which they appear to have done. I don't think it their responsibility to check the destination of transfers; only to ask if the account holder has made appropriate checks.

The verdict of the banking ombudsman will be interesting. I hope we get to hear what it is.

 

[Keswickian]

For starters, I would not deal with a bank over the phone with an amount like that.

Any time that I have large sums of money to transfer to a new payee, I always send a test run with a small amount of money, then check that it arrived correctly before sending the rest.

 

[marni]

We ha e in the past and will always send $100 to a different account. When we see that it has arrived safely through their App only then do we add any more dollars. Overseas people must be so rich from these hackers. It pays them to be inventive.

 

[Mary_Again]

I don't use Internet banking. I have to physically attend the bank even to pay bills. Boy am I glad about that!

 

[Amused]

A fool and his money are soon parted.

 

[evitravel]

read my reply We went to physical bank to transfer our money for safety and they still lost it. The problem with ING is there is no bank. You have to do all transactions online. That’s why they are a haven for scammers. We’ve since known many people who have been scammed the same way.

People are so quick to jump the gun. You have checked the phone number on google, which should have been enough proof that you are talking to the right people. I reckon people are jealous that you has the money and they are happy that you lost it. Nasty people around.......

 

[evitravel]

A fool and his money are soon parted.

Another jealous person. Instead of feeling compassion

 

[JimmyFlatrock]

What sticks in my mind is that would any of us rely on the opinions of a teller regarding the safety of all our life savings?

However, in my opinion, the tellers initial review of the emails was insufficient. Suncorp did not do enough in the verification process, given it has a duty of care to it's customers. Suncorp should have verified the account details independently and confirmed the legitimacy of the transfer. If they did that, then it's game over for the scammers.

One could accuse the customers of not being cautious enough, but I think they were let down by the bank's poor efforts to act out the crucial role banks should follow to prevent such scams. Seems to me the tellers training or awareness was not there either and for that amount of money, he should have referred the matter to someone who gets paid for that level of responsibility. Red flags should have gone off in his mind.

Here's what I found out about phone spoofing.

1. Phone Spoofing Mechanics:
   • Phone spoofing involves using fake caller ID information to mask the true source of an incoming call.
   • Scammers often mimic numbers from reputable companies, government agencies, or familiar area codes to trick recipients into answering calls.
   • Spoofed calls can lead to phishing attempts, scams, and privacy breaches.
2. Protecting Against Phone Spoofing:
   • Don’t share your phone number or other personal data unless necessary.
   • Be wary of online prize draws and sweepstakes; read terms and conditions carefully.
   • Leave consent boxes allowing data sharing or selling unchecked.
   • Be cautious if someone asks you to transfer money to another bank account.
   • Verify phone numbers independently
   • Use strong anti-malware apps or security software on your phone.

Remember, vigilance and skepticism are essential when dealing with financial transactions. Always verify independently, especially when transferring significant amounts of money.

For some who think banks do not have responsibilities in this regard, here is a bit from a Senate hearing in Adelaide. It's Westpac telling of the efforts it's putting into cross-banking contacting and how it's common practice amongst banks in the fight to protect customers scammed out of money. Whist the subject was about Power of Attorney financial abuse and how the Privacy Act was stymieing bank efforts to protect customers funds, it related how it could be protected in a way that banks go about protecting customers from scams...

Here is a piece from the article.


Scam system could be good model to replicate
Ms Pogonoski (General Manager - Customer Solutions Westpac) told the committee that the very sophisticated framework that exists between banks to deal with scams and fraudulent financial activity had not yet been replicated in terms of dealing with instances of financial abuse.

"The analogy to scams is an interesting one because we actually have quite a developed ecosystem between the banks to be able to send messaging between the banks and to effectively be able to chase funds," Ms Pogonoski said.

"In recognising fraud and scams as a crime, and scams as a major social issue, that ecosystem has been built, we don't yet have a similar ecosystem for financial abuse."

 

[Penny4]

The lesson is if you have the money, take off the rose coloured glasses with ING when dealing online.
I just checked out ING's website and they have financial advice you can visit in person if you live in Sydney. Also, they have all summary details of personal term % deposits and other saving terms % on their website which people can compare. One needs to check it out before any impulsive decisions, which scammers exploit. Don't think just calling a phone number is sufficient evidence.

 

[Rosita1950]

I am so thankful for our Commonwealth bank in Nambour. I tried to pay a bill for $5000 to a builder for a retaining wall. I was given his bank details by our neighbour, who had already paid half of the cost. He also emailed me the invoice with the bank details. My netbank refused to pay it. I was puzzled, so I went to the bank in Nambour in person and they said the BSB number is not an account at their bank. So happy with their diligence and security.

 

[Penny4]

I am so thankful for our Commonwealth bank in Nambour. I tried to pay a bill for $5000 to a builder for a retaining wall. I was given his bank details by our neighbour, who had already paid half of the cost. He also emailed me the invoice with the bank details. My netbank refused to pay it. I was puzzled, so I went to the bank in Nambour in person and they said the BSB number is not an account at their bank. So happy with their diligence and security.

Good on Commonwealth Bank!
It's rather puzzling though. Your neighbour lost their $5,000 to a dodgy builder, whereas you didn't?

 

[Rob44]

I would never do any transfer like this, even with our bank when term deposit renewal date comes we go into a branch .
Why are people still trusting people over the phone or email.

Ing should be held responsible as well if there number is going straight to a scammer.

Because in many cases these days we are obliged to. Precious few service provides write letters and precious few reply to letters. The only way to deal with such is through the telephone or email and if one does not give an email address, an account number, ID number, date of birth etc then nothing happens. The move to "modern technology' by all and sundry, and the continued development of "modern technology" , is a curse and certainly has proved not to have enhanced our personal security.

 

[Pam71]

I would never do any transfer like this, even with our bank when term deposit renewal date comes we go into a branch .
Why are people still trusting people over the phone or email.

Ing should be held responsible as well if there number is going straight to a scammer.

where are you going to go when the bank has closed?

 

[Barbara V]

Cannot believe people still falling for these scams after all the info and publicity on them on what to look for

 

[Penny4]

Cannot believe people still falling for these scams after all the info and publicity on them on what to look for

Plus, every bank's website have relevant info about the latest bank scams that are circulating online, emails or copycat phone numbers. They also outline what to do in these circumstances.
I guess people just want a good deal when they see it, and they act on it.