Couple loses $100k life savings to text message scam

Here at the SDC, we want to encourage everyone to be aware of potential scams, especially those involving banks.

We've heard of so many cases of telephone and digital scams that target unsuspecting seniors, and we hope reporting on them helps prevent further cases.



Recently, a couple from Victoria shared a horror story of what unfolded after they were targeted over the phone by scammers.

James Green and Sarah Gerendarsi had their entire life savings, $100,000, stolen after they followed the lead of a fraudster pretending to be a Westpac employee.


Screen Shot 2023-01-19 at 12.11.52 PM.png
A young couple from Victoria shared a horror story of what unfolded after they were targeted over the phone by scammers. Credit: Pexels/Michael Burrows.



It all began when Green received a seemingly legitimate text from Uber asking him to update his bank details. But little did he know, this was only the first step in a sinister plan.

An hour and a half later, he received another text from the same Westpac line he had been contacted on before, warning him that scammers were trying to take $5,500 from his account.



In a state of alarm and uncertainty, Green hurriedly called the security number included in the text.

He spoke to a person pretending to be a trustworthy Westpac employee and was convinced that he was doing the right thing when he began to transfer his money into a new account created by the said representative.

In the four days that followed, he sent practically all of their life savings to that account, only to find that the money had vanished and the 'Westpac employee' was no longer reachable.


Screen Shot 2023-01-19 at 12.12.01 PM.png
The scammer deceived Green into transferring the money into a 'safer' account. Credit: Pexels/RODNAE Productions.



The couple immediately informed Westpac and were eventually offered a paltry sum of $3,000 as a settlement. James and Sarah were understandably unconvinced and frustrated, as they had heard of other similar cases dealing with much higher amounts of restitution.

They decided to raise the case with the Australian Financial Complaints Authority (AFCA) and expressed the view that Westpac's phone line should have been better secured against these kinds of frauds.

'The fact they lost control and security of their text line that they have legitimately contacted you before, I think that brings some responsibility,' said Mr Green.

'They should be more secure with people who can access their text line for their customers.'
Key Takeaways

  • James Green and Sarah Gerendarsi, a young couple from Victoria, had their dreams of financial security shattered when they fell victim to a phishing scam.
  • The cunning con artist posed as a representative from Westpac and convinced the couple to hand over their banking information.
  • The couple are taking their case to the Australian Financial Complaints Authority, believing that the bank's phone line was not secure enough to protect them from this type of scam.
The Confirmation of Payee (CoP) system, currently operating in the UK, is a powerful tool in the fight against financial fraud and deception.

This system works by cross-referencing account information with a database of verified identities, ensuring that account numbers match the real person's name, making it difficult for scammers to use fake or stolen information to gain access to someone else's funds.


Screen Shot 2023-01-19 at 12.12.09 PM.png
The CoP system makes sure payments aren't sent to the wrong account by mistake. Credit: Pexels/Pavel Danilyuk.



The Australian Competition and Consumer Commission (ACCC) has recognised the potential benefits of such a system and has encouraged the government to introduce a similar process in Australia.

This would be a significant step in protecting consumers and their hard-earned savings from the claws of ruthless scammers by providing a more secure and reliable way to confirm the identity of account holders.

Introducing the Confirmation of Payee system (CoP) in Australia would be a major step towards a more secure banking system and would help to reduce the number of cases of fraud in the country.



Members, please take this story as a strong warning and remember to remain vigilant at all times when it comes to scammers.

If your 'bank' calls you, don't give any details out unless you are 100% sure it is legitimate; politely ask for their name and a callback number, and press them for further information if needed. You can then cross-reference this information online.

The ACCC has encouraged the government to introduce the 'Confirmation of Payee' system in Australia, and we here at the SDC firmly support this because we feel it would make a world of difference in the prevention of these kinds of scams.

What are your thoughts on this story? Let us know in the comments!
 
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Here at the SDC, we want to encourage everyone to be aware of potential scams, especially those involving banks.

We've heard of so many cases of telephone and digital scams that target unsuspecting seniors, and we hope reporting on them helps prevent further cases.



Recently, a couple from Victoria shared a horror story of what unfolded after they were targeted over the phone by scammers.

James Green and Sarah Gerendarsi had their entire life savings, $100,000, stolen after they followed the lead of a fraudster pretending to be a Westpac employee.


View attachment 11911
A young couple from Victoria shared a horror story of what unfolded after they were targeted over the phone by scammers. Credit: Pexels/Michael Burrows.



It all began when Green received a seemingly legitimate text from Uber asking him to update his bank details. But little did he know, this was only the first step in a sinister plan.

An hour and a half later, he received another text from the same Westpac line he had been contacted on before, warning him that scammers were trying to take $5,500 from his account.



In a state of alarm and uncertainty, Green hurriedly called the security number included in the text.

He spoke to a person pretending to be a trustworthy Westpac employee and was convinced that he was doing the right thing when he began to transfer his money into a new account created by the said representative.

In the four days that followed, he sent practically all of their life savings to that account, only to find that the money had vanished and the 'Westpac employee' was no longer reachable.


View attachment 11912
The scammer deceived Green into transferring the money into a 'safer' account. Credit: Pexels/RODNAE Productions.



The couple immediately informed Westpac and were eventually offered a paltry sum of $3,000 as a settlement. James and Sarah were understandably unconvinced and frustrated, as they had heard of other similar cases dealing with much higher amounts of restitution.

They decided to raise the case with the Australian Financial Complaints Authority (AFCA) and expressed the view that Westpac's phone line should have been better secured against these kinds of frauds.

'The fact they lost control and security of their text line that they have legitimately contacted you before, I think that brings some responsibility,' said Mr Green.

'They should be more secure with people who can access their text line for their customers.'
Key Takeaways

  • James Green and Sarah Gerendarsi, a young couple from Victoria, had their dreams of financial security shattered when they fell victim to a phishing scam.
  • The cunning con artist posed as a representative from Westpac and convinced the couple to hand over their banking information.
  • The couple are taking their case to the Australian Financial Complaints Authority, believing that the bank's phone line was not secure enough to protect them from this type of scam.
The Confirmation of Payee (CoP) system, currently operating in the UK, is a powerful tool in the fight against financial fraud and deception.

This system works by cross-referencing account information with a database of verified identities, ensuring that account numbers match the real person's name, making it difficult for scammers to use fake or stolen information to gain access to someone else's funds.


View attachment 11913
The CoP system makes sure payments aren't sent to the wrong account by mistake. Credit: Pexels/Pavel Danilyuk.



The Australian Competition and Consumer Commission (ACCC) has recognised the potential benefits of such a system and has encouraged the government to introduce a similar process in Australia.

This would be a significant step in protecting consumers and their hard-earned savings from the claws of ruthless scammers by providing a more secure and reliable way to confirm the identity of account holders.

Introducing the Confirmation of Payee system (CoP) in Australia would be a major step towards a more secure banking system and would help to reduce the number of cases of fraud in the country.



Members, please take this story as a strong warning and remember to remain vigilant at all times when it comes to scammers.

If your 'bank' calls you, don't give any details out unless you are 100% sure it is legitimate; politely ask for their name and a callback number, and press them for further information if needed. You can then cross-reference this information online.

The ACCC has encouraged the government to introduce the 'Confirmation of Payee' system in Australia, and we here at the SDC firmly support this because we feel it would make a world of difference in the prevention of these kinds of scams.

What are your thoughts on this story? Let us know in the comments!
Yes the CoP here in Australia would definitely be a big step forward. I'm surprised our government hasn't put in place by now.
 
Last week I had an email from my ' anti- vitus ' provider Norton, saying my subscription was up for re-newal at the cost of $500/ 3 years, my original payment was around $26 for 1 year, I called the supplied number to cancel and was sent to a website to get the "cancellation form" after I submitted it a 'supervisor' came onling line to finalise things, saying that I will be refunded all payments ( I had paid nothing so far ) he told me that his office would refund me by way of a GIFTCARD, that's when I hung up and called my bank, who immediately cancelled my card and informed me that someone had just tried to access my account but got nothing.
Not something you expect from a security service!
I've had lots of these emails and i don't even have Norton.
 
While I feel sorry for anyone who loses money to scammers I can’t believe the number of people still being scammed, there is so much information and frequent publicity about how to avoid being caught in a scam. People must live in their own little worlds to not be aware, and still get caught out. I agree a lot more use of brain power and good old common sense would stop a lot of people losing money.
 
A farmer had five female pigs. Times were hard, so he decided to take them to the local Show and sell them.
At the Show, he met another farmer who owned five male pigs. After talking a bit, they decided to mate the pigs and split everything 50/50.
The farmers lived one hundred kilometres apart, so they agreed to drive fifty kilometres each, and find a neutral venue in which to let the pigs mate.
The first morning, the farmer with the female pigs got up at 5 A.M., loaded the pigs into the family station wagon, (which was the only vehicle he had) and drove the fifty kilometres. While the pigs were mating, he asked the other farmer, "How will I know if they are pregnant?"
The other farmer replied, "If they're lying in the grass first thing in the morning, they're pregnant. If they're in the mud, they're not."
The next morning the pigs were rolling in the mud. So the farmer hosed them off, loaded them into the family station wagon and proceeded to try again.
This continued each morning for more than a week. Both farmers were worn out.
After about a fortnight the first farmer was too tired to get out of bed. He called out to his wife,
"Hey, Darl'? Please look outside and tell me whether the pigs are in the mud or in the grass."
"Neither," yelled his wife. "They're in the station wagon and one of them is honking the horn!"

OK...OK.... It's off-topic, so shoot me.
At least it's not another sob-story about someone coming down in the last shower.
How about SDC run a column about Members finding cheeky 'hacks'(?) and other ways to totally ruin a Scammer/Spammer's day?
 
What is wrong with people? There is enough information out there about these scams and they tell you to hang up and contact the bank direct and do so by NOT using any phone numbers or links in the texts or emails that you receive. I am so over hearing these sob stories. Just do not respond to any emails or phone messages you receive unsolicited from any financial institution. Need to use the brain you were born with people.
My thoughts exactly. I dont know why people are still being scammed with so much information out there.
 

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