Aussie family blindsided by a $150,000 scam—‘this thing happens all the time’
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Financial security is something many of us take for granted, trusting that the systems in place will protect us from unexpected losses.
But what happens when those systems fail in the most crucial moments, leaving families to bear the devastating consequences?
What unfolded for one Australian family raises serious questions about accountability and the true cost of inaction.
A Queensland family was devastated after scammers stole $150,000 due to a bank's oversight, leaving them responsible for interest payments on the stolen funds and allowing the bank to profit from their loss.
‘It’s basically racketeering,’ Charlie*, 50, shared.
At the start of 2024, Charlie rushed to his elderly parents’ Gold Coast home after receiving a call from them.
He discovered his father had unknowingly installed malware on his computer, and the family feared fraudsters had gained access to their bank accounts.
The parents immediately disconnected the computer and contacted their bank, requesting their accounts be frozen.
A bank employee checked the mother’s primary savings account and assured her there were no transactions.
However, the staff member failed to freeze or even check their loan account, allowing criminals to drain $150,000.
‘I don’t know if she’s stupid, or she’s inexperienced, or she’s not trained properly,’ Charlie said.
Believing their money was safe, the family shifted focus to protecting their superannuation held at another institution.
They went to bed that night feeling reassured, but Charlie awoke the next day with a gut feeling that something was wrong.
Being a weekend, he searched online to find an open branch and went there to investigate further.
He was alarmed to learn that the family was supposed to report the incident to the bank’s financial crime division but had not been told this.
It became clear the bank had taken no action the previous day to prevent the theft.
Overnight, the scammers accessed the parents’ line of credit and completed multiple transactions in just eight minutes.
‘By this stage, the money is well and truly gone because they failed to do anything,’ Charlie said.
‘The manager kept giving us the run-around saying “this thing happens all the time”.’
The family found no solace in learning others faced similar scams, as they were left paying 6.9 per cent interest on the stolen $150,000.
They eventually hired a lawyer to fight for their money.
Initially, the bank refused to offer compensation, arguing Charlie’s father was at fault.
They also claimed the family had called outside business hours, despite Charlie insisting he called just after 4:00 pm.
The parents were accused of having an implausible $10 million spending limit on their account, but they could not disprove the claim.
Repeated legal letters from the family’s lawyer went unanswered by the bank.
Ultimately, the family turned to the Australian Financial Complaints Authority (AFCA) and reached a confidential settlement.
Charlie said part of the bank’s decision to settle might have stemmed from the lawyer finding a similar AFCA case where a full refund was issued.
He chose to remain anonymous due to a non-disparagement clause signed by his parents.
* Name was changed for privacy reasons.
Could this happen to you? What steps do you take to safeguard your finances? Share your thoughts and experiences in the comments below.
Keep yourself informed and safe from the latest scams with the SDC’s Cybersecurity for Aussies Over 60 modules. Learn more here.
But what happens when those systems fail in the most crucial moments, leaving families to bear the devastating consequences?
What unfolded for one Australian family raises serious questions about accountability and the true cost of inaction.
A Queensland family was devastated after scammers stole $150,000 due to a bank's oversight, leaving them responsible for interest payments on the stolen funds and allowing the bank to profit from their loss.
‘It’s basically racketeering,’ Charlie*, 50, shared.
Aussie family loses $150,000 in devastating scam. Image source: Pexel/Antoni Shkraba
At the start of 2024, Charlie rushed to his elderly parents’ Gold Coast home after receiving a call from them.
He discovered his father had unknowingly installed malware on his computer, and the family feared fraudsters had gained access to their bank accounts.
The parents immediately disconnected the computer and contacted their bank, requesting their accounts be frozen.
A bank employee checked the mother’s primary savings account and assured her there were no transactions.
However, the staff member failed to freeze or even check their loan account, allowing criminals to drain $150,000.
‘I don’t know if she’s stupid, or she’s inexperienced, or she’s not trained properly,’ Charlie said.
Believing their money was safe, the family shifted focus to protecting their superannuation held at another institution.
They went to bed that night feeling reassured, but Charlie awoke the next day with a gut feeling that something was wrong.
Being a weekend, he searched online to find an open branch and went there to investigate further.
He was alarmed to learn that the family was supposed to report the incident to the bank’s financial crime division but had not been told this.
It became clear the bank had taken no action the previous day to prevent the theft.
Overnight, the scammers accessed the parents’ line of credit and completed multiple transactions in just eight minutes.
‘By this stage, the money is well and truly gone because they failed to do anything,’ Charlie said.
‘The manager kept giving us the run-around saying “this thing happens all the time”.’
The family found no solace in learning others faced similar scams, as they were left paying 6.9 per cent interest on the stolen $150,000.
They eventually hired a lawyer to fight for their money.
Initially, the bank refused to offer compensation, arguing Charlie’s father was at fault.
They also claimed the family had called outside business hours, despite Charlie insisting he called just after 4:00 pm.
The parents were accused of having an implausible $10 million spending limit on their account, but they could not disprove the claim.
Repeated legal letters from the family’s lawyer went unanswered by the bank.
Ultimately, the family turned to the Australian Financial Complaints Authority (AFCA) and reached a confidential settlement.
Charlie said part of the bank’s decision to settle might have stemmed from the lawyer finding a similar AFCA case where a full refund was issued.
He chose to remain anonymous due to a non-disparagement clause signed by his parents.
* Name was changed for privacy reasons.
Keep yourself informed and safe from the latest scams with the SDC’s Cybersecurity for Aussies Over 60 modules. Learn more here.
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