Couple loses $100k life savings to text message scam
- Replies 25
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.
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.
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.'
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.
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!
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.
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.
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.'
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.
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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