Man shocked over bank’s response after losing $11,000 from scammers
- Replies 42
In an age where digital transactions are common, the threat of financial fraud looms larger. Many are all too aware of this reality, as they increasingly become targets for cunning scammers.
But what happens when the unthinkable occurs, and your hard-earned savings are siphoned away by faceless fraudsters?
One man's recent battle with his bank after falling victim to a scam provides not only a cautionary tale but also a glimmer of hope for better consumer protection.
When Andrew Newbold, former President of Hawthorn Football Club and current Chair of Golf Australia, received an alert from his credit card provider, Latitude, about a hefty purchase at an Essendon JB Hi-Fi store, he assumed it was a legitimate transaction made by his daughter.
However, the reality was far more sinister. Scammers had drained over $11,000 from his credit card, making multiple purchases at various JB Hi-Fi stores across Melbourne.
Upon discovering the fraudulent activity, Andrew immediately locked his card and contacted Latitude's customer service. Despite his prompt action, he was informed that nothing could be done to reverse the transactions since the goods had already been exchanged in-store.
The saga took an even more frustrating turn when, before his replacement card had even arrived, another fraudulent charge appeared on his account.
This time, it was a $50 purchase at a barbecue chicken shop on Elizabeth street in Melbourne’s centre.
Worried about racking up thousands more and unable to lock a card he hadn’t even received, Andrew called Latitude’s customer service again.
‘I couldn’t believe the card was still on its way from Latitude, and the fraudster was still able to use it, but I couldn’t,’ Andrew said.
‘I was told they (Latitude) hadn’t removed the token associated with the card.’
Credit card tokenisation is supposed to be a robust security measure, but in this case, it failed to protect the customer's funds.
Dissatisfied with Latitude's response, Andrew took matters into his own hands, disputing the transactions and reaching out to the JB Hi-Fi stores involved.
‘I called Essendon JB Hi-Fi and was put through to a manager who informed me that the purchases were, in fact, made in-store,’ Andrew said.
Latitude's initial stance was to maintain the charges on his account.
We’ve found that the purchase was made using the contactless technology in your card/digital wallet, meaning that your card/device was in the store for the transaction,’ a customer specialist from Latitude’s Fraud Claims and Disputes team said.
‘As we understand that the card/device hasn’t left your possession, unfortunately, we can’t dispute the transaction with the merchant without compelling evidence that you didn’t make or authorise the transaction.’
However, after media intervention, Latitude reversed its decision, refunding Andrew the full amount plus $200 in compensation.
‘Latitude has confirmed that the customer was the subject of a sophisticated fraud. We have apologised to the customer and waived the fraudulent transactions,’ a spokesman for Latitude said.
‘I’m lucky this hasn’t created havoc in my life, but I’m sure for some people it would and that behaviour is unacceptable, I would’ve thought,’ Andrew said.
‘If I’ve lost my actual card or misplaced it, I could sort of understand the bank’s position, but when I’m sitting at home on a Saturday afternoon, and I haven’t done anything to put my card at risk, they should definitely be refunding that money.’
Andrew's ordeal is a stark reminder of the vulnerability we all face in the digital age. It also raises important questions about the responsibility of banks and financial institutions to protect their customers.
In the UK, for example, banks using the faster payment system are mandated to reimburse fraud victims up to £85,000 (approximately $169,121 AUD).
Such measures are not yet commonplace in Australia, leaving many victims to fend for themselves.
The story doesn't end with Andrew.
Other victims have come forward with similar experiences, including one who lost almost $2000 to scammers who purchased an iPhone through JB Hi-Fi's click-and-collect system without any authentication.
‘So they bought the phone online then went in store to collect it and there was never any authentication,’ the victim said.
‘I have absolutely no idea how they were able to hand over the goods, I would’ve thought at this dollar amount there would be two-factor authentication or some kind of identification process in place.’
Citibank provided a temporary credit while investigating the fraud, but the victim remains uncertain about the outcome.
These incidents are part of a larger pattern of fraud targeting JB Hi-Fi outlets in Melbourne. Just last month, another individual had $14,000 stolen, with the bank initially refusing to refund the fraudulent purchases.
‘Why don’t (they) want to stop it happening? The bank says they are up to date with scams, but prevention is better than a cure—they should get on top of how people are doing it, why they are doing it, and make their product more secure,’ the victim said.
It was only after media attention that the bank relented and returned the funds.
Have you or someone you know been affected by financial fraud? What measures do you take to protect your savings? Share your experiences and tips in the comments below.
But what happens when the unthinkable occurs, and your hard-earned savings are siphoned away by faceless fraudsters?
One man's recent battle with his bank after falling victim to a scam provides not only a cautionary tale but also a glimmer of hope for better consumer protection.
When Andrew Newbold, former President of Hawthorn Football Club and current Chair of Golf Australia, received an alert from his credit card provider, Latitude, about a hefty purchase at an Essendon JB Hi-Fi store, he assumed it was a legitimate transaction made by his daughter.
However, the reality was far more sinister. Scammers had drained over $11,000 from his credit card, making multiple purchases at various JB Hi-Fi stores across Melbourne.
Andrew Newbold lost over $11,000 from his credit card after making several purchases at JB Hi-Fi stores. Credit: jcomp / Freepik
Upon discovering the fraudulent activity, Andrew immediately locked his card and contacted Latitude's customer service. Despite his prompt action, he was informed that nothing could be done to reverse the transactions since the goods had already been exchanged in-store.
The saga took an even more frustrating turn when, before his replacement card had even arrived, another fraudulent charge appeared on his account.
This time, it was a $50 purchase at a barbecue chicken shop on Elizabeth street in Melbourne’s centre.
Worried about racking up thousands more and unable to lock a card he hadn’t even received, Andrew called Latitude’s customer service again.
‘I couldn’t believe the card was still on its way from Latitude, and the fraudster was still able to use it, but I couldn’t,’ Andrew said.
‘I was told they (Latitude) hadn’t removed the token associated with the card.’
Credit card tokenisation is supposed to be a robust security measure, but in this case, it failed to protect the customer's funds.
Dissatisfied with Latitude's response, Andrew took matters into his own hands, disputing the transactions and reaching out to the JB Hi-Fi stores involved.
‘I called Essendon JB Hi-Fi and was put through to a manager who informed me that the purchases were, in fact, made in-store,’ Andrew said.
Latitude's initial stance was to maintain the charges on his account.
We’ve found that the purchase was made using the contactless technology in your card/digital wallet, meaning that your card/device was in the store for the transaction,’ a customer specialist from Latitude’s Fraud Claims and Disputes team said.
‘As we understand that the card/device hasn’t left your possession, unfortunately, we can’t dispute the transaction with the merchant without compelling evidence that you didn’t make or authorise the transaction.’
However, after media intervention, Latitude reversed its decision, refunding Andrew the full amount plus $200 in compensation.
‘Latitude has confirmed that the customer was the subject of a sophisticated fraud. We have apologised to the customer and waived the fraudulent transactions,’ a spokesman for Latitude said.
‘I’m lucky this hasn’t created havoc in my life, but I’m sure for some people it would and that behaviour is unacceptable, I would’ve thought,’ Andrew said.
‘If I’ve lost my actual card or misplaced it, I could sort of understand the bank’s position, but when I’m sitting at home on a Saturday afternoon, and I haven’t done anything to put my card at risk, they should definitely be refunding that money.’
Andrew's ordeal is a stark reminder of the vulnerability we all face in the digital age. It also raises important questions about the responsibility of banks and financial institutions to protect their customers.
In the UK, for example, banks using the faster payment system are mandated to reimburse fraud victims up to £85,000 (approximately $169,121 AUD).
Such measures are not yet commonplace in Australia, leaving many victims to fend for themselves.
The story doesn't end with Andrew.
Other victims have come forward with similar experiences, including one who lost almost $2000 to scammers who purchased an iPhone through JB Hi-Fi's click-and-collect system without any authentication.
‘So they bought the phone online then went in store to collect it and there was never any authentication,’ the victim said.
‘I have absolutely no idea how they were able to hand over the goods, I would’ve thought at this dollar amount there would be two-factor authentication or some kind of identification process in place.’
Citibank provided a temporary credit while investigating the fraud, but the victim remains uncertain about the outcome.
These incidents are part of a larger pattern of fraud targeting JB Hi-Fi outlets in Melbourne. Just last month, another individual had $14,000 stolen, with the bank initially refusing to refund the fraudulent purchases.
‘Why don’t (they) want to stop it happening? The bank says they are up to date with scams, but prevention is better than a cure—they should get on top of how people are doing it, why they are doing it, and make their product more secure,’ the victim said.
It was only after media attention that the bank relented and returned the funds.
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