Business owner loses $50,000 in devastating scam, banks allegedly involved
- Replies 9
In the picturesque town of Margaret River, known for its wine and waves, a local business owner faced a financial tsunami threatening his livelihood.
Wade Brown, the proprietor of Pure Glass WA, experienced every entrepreneur's nightmare when he was scammed out of a staggering $50,000.
This harrowing tale cautions against the ever-present dangers lurking in the digital depths, ready to ensnare the unwary.
The ordeal began with an ominous phone call on a Friday night in 2022 when an employee alerted Mr Brown to the disappearance of a hefty sum from the company's bank account.
Two separate payments, each amounting to $25,000, had been siphoned to an account under Pure Glassess, accompanied by INVOICE 21745.
The alarm bells rang, and Mr Brown promptly contacted Bankwest to freeze his account, hoping to stem the financial bleeding.
According to Mr Brown, the staff member at Bankwest assured him that they would notify AMP bank of the fraudulent transfer.
Bankwest later confirmed that they had informed AMP within 35 minutes of the call.
However, despite the swift action taken by both Mr Brown and Bankwest, AMP failed to intercept the transaction, and the funds landed squarely in the scammer's lap.
The aftermath of the scam was a two-year battle for justice and restitution, with Mr Brown fighting tooth and nail to reclaim the lost funds that nearly spelled the end for Pure Glass WA.
'It almost crippled us. $50,000 is a lot in any small business,' Mr Brown lamented.
His pursuit of recompense led him to complain to Bankwest through the Australian Financial Complaints Authority (AFCA), only to be met with the bitter conclusion that his business, not the bank, bore the responsibility for the scam.
The day before the fraudulent transfer, the internet at Pure Glass WA had mysteriously gone down.
Mr Brown remained adamant that the theft should have been impossible.
‘I tried to do two transactions without a security code,’ he said.
‘It’s impossible.’
Any transaction required a security token code generated by a dongle inserted into a computer's USB port.
This dongle was securely stored in a locked room, inaccessible to the employee on duty during the scam.
Bankwest, however, countered that the scammer had accessed the account using a token code sent to the registered mobile number.
While Bankwest declined to comment on Mr Brown's specific case, a spokesperson emphasised the bank's commitment to customer security.
‘The security of customers and their finances is a priority for Bankwest.’ the spokesperson said.
‘Bankwest and its dedicated scams team [do] everything it can to prevent and/or recall funds lost to scams, but it’s not always possible, especially when customers have participated in and authorised the transactions.’
‘We encourage customers to remember three simple steps — stop, check and reject — to ensure they pause and think before acting, check with a trusted contact or organisation, and reject any contact they’re unsure about.’
AMP, on the receiving end of the fraudulent transfer, has yet to offer a public response.
In other news, a Bankwest customer in rural Western Australia was refused a $300 cash withdrawal at the Dalwallinu branch.
Customers are now directed to the more distant Moora branch or the post office for withdrawals, suggesting possible service limitations at smaller branches. You can read more about it here.
Have you or someone you know been affected by a scam? How do you protect yourself and your business from such threats? Feel free to share your insights in the comments below.
Wade Brown, the proprietor of Pure Glass WA, experienced every entrepreneur's nightmare when he was scammed out of a staggering $50,000.
This harrowing tale cautions against the ever-present dangers lurking in the digital depths, ready to ensnare the unwary.
The ordeal began with an ominous phone call on a Friday night in 2022 when an employee alerted Mr Brown to the disappearance of a hefty sum from the company's bank account.
Two separate payments, each amounting to $25,000, had been siphoned to an account under Pure Glassess, accompanied by INVOICE 21745.
Wade Brown from Margaret River lost $50,000 to a bank fraud scam. Credit: Shutterstock
The alarm bells rang, and Mr Brown promptly contacted Bankwest to freeze his account, hoping to stem the financial bleeding.
According to Mr Brown, the staff member at Bankwest assured him that they would notify AMP bank of the fraudulent transfer.
Bankwest later confirmed that they had informed AMP within 35 minutes of the call.
However, despite the swift action taken by both Mr Brown and Bankwest, AMP failed to intercept the transaction, and the funds landed squarely in the scammer's lap.
The aftermath of the scam was a two-year battle for justice and restitution, with Mr Brown fighting tooth and nail to reclaim the lost funds that nearly spelled the end for Pure Glass WA.
'It almost crippled us. $50,000 is a lot in any small business,' Mr Brown lamented.
His pursuit of recompense led him to complain to Bankwest through the Australian Financial Complaints Authority (AFCA), only to be met with the bitter conclusion that his business, not the bank, bore the responsibility for the scam.
The day before the fraudulent transfer, the internet at Pure Glass WA had mysteriously gone down.
Mr Brown remained adamant that the theft should have been impossible.
‘I tried to do two transactions without a security code,’ he said.
‘It’s impossible.’
Any transaction required a security token code generated by a dongle inserted into a computer's USB port.
This dongle was securely stored in a locked room, inaccessible to the employee on duty during the scam.
Bankwest, however, countered that the scammer had accessed the account using a token code sent to the registered mobile number.
While Bankwest declined to comment on Mr Brown's specific case, a spokesperson emphasised the bank's commitment to customer security.
‘The security of customers and their finances is a priority for Bankwest.’ the spokesperson said.
‘Bankwest and its dedicated scams team [do] everything it can to prevent and/or recall funds lost to scams, but it’s not always possible, especially when customers have participated in and authorised the transactions.’
‘We encourage customers to remember three simple steps — stop, check and reject — to ensure they pause and think before acting, check with a trusted contact or organisation, and reject any contact they’re unsure about.’
AMP, on the receiving end of the fraudulent transfer, has yet to offer a public response.
In other news, a Bankwest customer in rural Western Australia was refused a $300 cash withdrawal at the Dalwallinu branch.
Customers are now directed to the more distant Moora branch or the post office for withdrawals, suggesting possible service limitations at smaller branches. You can read more about it here.
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