Man loses $20,000 with one phone call: ‘That’s hard to accept’

Disclaimer: The name with an asterisk (*) has been changed to protect the person's privacy in this story.

In an age where technology has made banking more accessible and convenient than ever, it also paved the way for a new breed of sophisticated scams that can catch people off guard.

A man's recent experience is a stark reminder of this reality, as he watched a staggering $20,000 vanish from his savings account after a single phone call.



The 32-year-old, a customer of UBank–a subsidiary of the National Australia Bank (NAB)–fell victim to a convincing phone scam.

The man’s older sister, Lanie*, said the ordeal began with what seemed like a harmless text message from his bank, which was the start of a more elaborate fraud.


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A man fell victim to a UBank phone scam. Credit: Freepik


The message appeared from a random Australian number, which read, ‘Suspected fraudulent transaction of $0.0 has been detected…Please respond CANCEL if you would like us to cancel your card and reissue a new card to your address.’

Initially sceptical, the man confirmed with UBank that the message was legitimate.

Three weeks later, the man received a call from an unknown number. The caller, who spoke with an Australian accent, claimed to be a UBank employee and was alarmingly well-informed.

He knew the last four digits of the man's credit card, his recent transactions and even provided a reference number.

This level of detail gave the scammer credibility, and the man, who had been saving hard to buy his first home, provided a PIN that had been texted to him, believing it to be a step in confirming his identity.

Unfortunately, it was the security code the scammers needed to drain his accounts.



‘It’s really clever in hindsight,’ Lanie* said, adding that ‘the scammer was really professional sounding’.

The scammer kept her brother on the phone for half an hour, distracting him from checking his bank accounts.

‘A few minutes on the phone and suddenly $20,000 gone, that’s hard to accept,’ she said.

‘While he was on the phone with the scammers, he saw the transaction go through, two lots of $10,000. He hung up right away.’

A UBank staff member said the investigation would take 45 days. And despite the man's immediate report of the fraud, the bank did not contact the recipient bank for three days.

UBank asserted that the delay wouldn't hinder the recovery process since the funds were withdrawn from the account on the same day they were transferred out.


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The man believed the scammer claimed to be a UBank employee. Credit: Freepik


A spokesperson from UBank stated that they couldn't provide a specific comment for privacy reasons and declined a request for the customer to sign a waiver to share more information with the media.

They clarified that the two events–the text message from UBank and the subsequent call from the scammer–were not related.

While confirming the authenticity of the original text message, UBank mentioned that they typically ‘don't send links in unexpected SMSs’.

‘So never click on a link in a text claiming to be from Ubank, it’s likely a scam,’ the spokesperson said.

‘Additionally, we will never text or call customers and ask for them to provide personal information, one-time passcodes or PINs. If customers receive a call purporting to be from UBank that feels suspicious, hang up. Then call us immediately.’



UBank offered a $1,000 goodwill gesture, which the man declined, opting instead to lodge a complaint with the Australian Financial Complaints Authority (AFCA).

‘Out of the two of us, he’s the more diligent one,’ Lanie* said.

‘I was shocked this happened to him. It’s a lot of money to get over, especially when you’re trying to save for a house in Melbourne. It happened so quickly.’

She also questioned the security measures and communication strategies employed by UBank.

‘Why did they text him with a random SMS number from UBank when they (banks) teach people not to respond (to that),’ she asked.



This wasn’t the first time UBank received backlash from its customers.

In a previous story, thousands of its customers received a text message claiming to be from UBank, saying their spending limit has been restricted. You can read more about this story here.

Tip
If you think you've been scammed, report it to the ACCC's Scamwatch here. You can also visit our Scam Watch forum for more information on the latest scams.
Key Takeaways

  • A man lost $20,000 from his savings due to a sophisticated phone scam involving fraudsters who impersonated bank employees.
  • The fraud occurred after the victim had earlier received a legitimate but suspicious-looking text message from his bank, UBank (a subsidiary of NAB), which may have made him more vulnerable to the scam.
  • UBank, while confirming the legitimacy of the initial text message from them, stressed that they never send links in unexpected SMS messages, and they do not request personal information or security details such as PINs via text or phone calls.
  • Ubank offered the victim $1,000 as a goodwill gesture, which he declined, and has since lodged a complaint with the Australian Financial Complaints Authority (AFCA).
Have you or someone you know been targeted by similar fraud attempts? Let us know in the comments below.
 
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All banks need to take more responsibility!

My daughter is with nab and was in Sydney for work on Monday, she purchased and got delivered 3 boxes of souvlaki at a total cost of $390 because the delivery address was not her address and actually over 2 hours away from hers the bank declined the payment stating possible fraud. After contacting her bank she explained she was in Sydney for the day for work and that she had an order delivered to her parents due to the butcher not delivering to hers.

The bank okayed it but delivery driver needed to see her drivers licence when they delivered. Lucky she planned on staying for dinner before heading home as delivery arrived 7pm
I told her and her hubby it's actually good their bank are so cautious
 
A txt with a link. Unrecognised phone number. Call from the bank. Always say I'll call you back but never use the link. Use the number you know is correct. This story is full of obvious clues. When will people learn that when a stranger calls and asks for personel info it's a scam 100% Sorry he lost his money but it is his own fault not the banks.
 
I feel sorry for the person, but when you get a text or a message they have already hacked your number and if you try to contact the bank they will answer.
The best thing is to go to a nearest branch.
 
I had a similar thing happen & the best thing is to hang up straight away BUT ring your bank from a different number. My husband rang our bank to check & it was a legitimate call but you can't be too sure. Even call into.the bank. We are an older couple buy we are so wary of anything & everything. You have to be these days. Very sad but that's the way it is.
 
Whilst I feel very sorry for this man who has lost so much money, it seems that most people are taken in by a message on their mobile phone. People, please contact your bank, tax office or wherever in person and check whether something is actually true or not. Thankfully I do not have a mobile phone - land line only and yes, people still try to scam us - but it doesn't take long to work out that they are scammers. Do not reply to messages on your mobile and be safe.
 
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Just chuck that mobile phone in the deep blue sea as a start and only pay by cheque through Australia Post. At least you have a couple of days in which to cancel cheques. That's how you begin to build security. Modern digital technology may be wonderful and very convenient but it is subject to our human frailities, which makes it a scammer's paradise.
 
this is what the scammers have been working towards, the banks have played right into their hands. with the banks all making you go digital and online, they are closing the doors and there will be no way of sorting things face to face. the scammers work through phones and internet, if you call the bank on the phone or internet how do you know you are not connected to a scammer? the banks don't care as long as they don't lose their own money. stop closing the banks or we will ALL lose our money and that's for sure. wake up you banks, take a look and see what's going on.
 
this is what the scammers have been working towards, the banks have played right into their hands. with the banks all making you go digital and online, they are closing the doors and there will be no way of sorting things face to face. the scammers work through phones and internet, if you call the bank on the phone or internet how do you know you are not connected to a scammer? the banks don't care as long as they don't lose their own money. stop closing the banks or we will ALL lose our money and that's for sure. wake up you banks, take a look and see what's going on.
Use your landline............Dammit, my Southern Phone landline works through the Southern Phone modem..........
 
The more I see things like this, the more dismayed I am at the proposed cashless society we are being urged to accept.
I don't know anything about Ubank except that is or was part of the NAB group.
If it is an online only bank I would run a mile. I do not like the concept of being unable to walk into a branch and talk to someone face to face.
The way things are going, the doors will be opened to all kinds of scamming scummers. At least if you have cash in your pocket, doesn't matter if things go offline.
As far as SMS, Email and phone contact, always assume the worst and do not knee jerk react. Always check on them and do not offer any information. If they are genuine, they should be the ones providing answers to security questions when the phone you.
 
The more I see things like this, the more dismayed I am at the proposed cashless society we are being urged to accept.
I don't know anything about Ubank except that is or was part of the NAB group.
If it is an online only bank I would run a mile. I do not like the concept of being unable to walk into a branch and talk to someone face to face.
The way things are going, the doors will be opened to all kinds of scamming scummers. At least if you have cash in your pocket, doesn't matter if things go offline.
As far as SMS, Email and phone contact, always assume the worst and do not knee jerk react. Always check on them and do not offer any information. If they are genuine, they should be the ones providing answers to security questions when the phone you.
If you have cash in your pocket and robbed you never see that money again. At east the bank will usually pay you if fraud has happened online.
 
this is what the scammers have been working towards, the banks have played right into their hands. with the banks all making you go digital and online, they are closing the doors and there will be no way of sorting things face to face. the scammers work through phones and internet, if you call the bank on the phone or internet how do you know you are not connected to a scammer? the banks don't care as long as they don't lose their own money. stop closing the banks or we will ALL lose our money and that's for sure. wake up you banks, take a look and see what's going on.
Yeah, it's the bank's fault some fool clicked on a link
 
Just chuck that mobile phone in the deep blue sea as a start and only pay by cheque through Australia Post. At least you have a couple of days in which to cancel cheques. That's how you begin to build security. Modern digital technology may be wonderful and very convenient but it is subject to our human frailities, which makes it a scammer's paradise.
When chqs were used more people would take them from the mail and bank them. It's a piece of paper and smaller amounts can easily be banked.
 

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