In an era where technology is increasingly integrated into our daily lives, the risk of falling victim to cyber scams is a growing concern. This is especially true for older Australians, who may not be as tech-savvy as their younger counterparts.

A recent case involving a 76-year-old man, Ralph Chandler, who lost his hard-earned life savings to a scam, has highlighted the urgent need for uniform bank policies to protect customers from such cons.

Ralph Chandler, a hardworking man still active in the workforce, had placed $15,000 into a fixed-term deposit with Bendigo Bank, hoping to earn high interest over 90 days.

However, his financial security was shattered when he fell victim to a tech support scam.

A 76-year-old man lost over $21,000 to a tech support scam. Credit: Ono Kosuki/Pexels

A pop-up screen claiming to be from software giant Microsoft appeared on his computer saying, ‘Warning, warning, please phone this number’. Trusting the message, Chandler called the provided number, unknowingly stepping into a well-laid trap.

‘A woman answered and said, “You've got an issue, that hackers are trying to get into your banking system”,’ Mr Chandler recalled. ‘She was putting some stuff across the screen to blank it out while she stole my money.’

Within minutes, she had transferred $15,000 from his fixed-term account to his transaction account, where an additional $5,000 was already present.

‘I had $15,000 in a fixed deposit, which I thought was untouchable, but apparently, it's only untouchable for the first 90 days,’ he said.

In total, the scammer stole $21,200, leaving Chandler and his wife with a mere $85.30.

The aftermath of the scam was a financial nightmare for Chandler. Despite immediately contacting Bendigo Bank, he was left waiting for an hour and a half before he could speak to someone.

The bank's response was far from satisfactory, with Chandler's case manager merely acknowledging that the customer service ‘was certainly not one which [they] aspire to’.

A letter from the bank read, ‘Your feedback will assist us in reviewing our processes and providing additional training for our staff to improve the experience for others.’

To which Mr Chandler said, ‘Now if that's not saying, “We stuffed up”, I don't know what it is.’

He also expressed his frustration, ‘I still don't understand how they can let $15,000, [which] I thought was on a fixed deposit, get transferred and then taken out without someone flagging, “Hey, there's a problem!”.’

A Bendigo Bank spokesperson, while not commenting on Chandler's specific case, stated that the company takes ‘cyber security very seriously, protecting our customers and safeguarding our systems with a variety of cyber-crime prevention methods’.

The spokesperson also said that it’s ‘important customers take steps to protect themselves and do not share their passwords or allow someone they don't know or trust to log into [their] computer remotely’.

‘When the bank is at fault, we will reimburse customers for the loss of funds,’ they added.

The Australian Competition and Consumer Commission (ACCC) has expressed concern over the lack of uniformity in how banks handle scams, making Australia's banking systems and customers vulnerable.

The ACCC is calling for the establishment of cross-industry standards and codes that banks must follow to prevent scammers from exploiting weak links.

Tech support scams, like the one Chandler fell victim to, are alarmingly common. A 2021 report by Microsoft found Australians to be the second most likely to fall victim to such scams in the Asia Pacific, trailing only India. These scams often exploit people's trust in global brands like Microsoft, luring victims into a false sense of security.

In the UK, banks must reimburse customers who have been scammed unless they acted fraudulently or with gross negligence, starting next year. However, the Australian Bankers' Association (ABA) argued that such a refund guarantee would make Australia a 'honey pot' for scammers. Instead, the ABA suggests focusing on preventing scammers from contacting potential victims.

Communications between Mr Chandler and both the Australian Financial Complaints Authority and the Australian Prudential Regulation Authority indicate that he has requested the bank to reimburse half of the funds he lost.

Mr Chandler has stated that the issue is currently being handled by The Australian Financial Complaints Authority, which is expected to assign a case manager to it by the new year.

If you believe a tech support scam has targeted you, contact your bank immediately and report the scam to the ACCC's Scamwatch: https://www.scamwatch.gov.au/report-a-scam

Key Takeaways

• A 76-year-old man has lost over $21,000 to a tech support scam, prompting calls for a uniform bank policy on such scams in Australia, leaving Chandler and his wife with a mere $85.30.
  
• The victim asserted that Bendigo Bank's response was slow and inadequate, and he asked the bank to reimburse half the stolen funds.
  
• The Australian Competition and Consumer Commission says Australians are vulnerable due to a lack of consistent bank rules for dealing with scams.
  
• A report has found that Australians are the second most targeted population for tech support scams after India.
  

What’s your take on this, members? Do you think the bank handled the situation fairly? Share your thoughts in the comments below!

 

[Petra]

If you want to invest thousands of $'s, call your bank, and make an appointment with the manager, then, go to your bank, (by yourself, a taxi to drop you off, your carer (if you have one), your children (if you have one nearby). Walk into your bank, and ask to speak to the Manager whom you have an appointment with. Sit down with the Manager in his/her office, and talk and do your business face to face with your bank. But people are lazy, they don't want to go out of their homes, and that is the problem.

 

[Bridgit]

Oh the good old Microsoft Scam - if you get it - disconnect from the internet immediately or pull the plug on your device - switch off. Once you break the connection - leave it off for approx 30 mins and switch on again. You have broken their access to your device - we have had this try on 4 times now and handled it the same way. Unfortunately people panic and do what they want and lose everything.

 

[DLHM]

If you want to invest thousands of $'s, call your bank, and make an appointment with the manager, then, go to your bank, (by yourself, a taxi to drop you off, your carer (if you have one), your children (if you have one nearby). Walk into your bank, and ask to speak to the Manager whom you have an appointment with. Sit down with the Manager in his/her office, and talk and do your business face to face with your bank. But people are lazy, they don't want to go out of their homes, and that is the problem.

I disagree with you that “people are lazy, they don't want to go out of their homes, and that is the problem.” Did you consider that many people would like the opportunity to sit down face-to-face to speak with their bank manager? Logistics and health are just a couple of reasons I can think of off-hand that make phones a more viable way of communicating.

 

[Miss Chris]

I disagree with you that “people are lazy, they don't want to go out of their homes, and that is the problem.” Did you consider that many people would like the opportunity to sit down face-to-face to speak with their bank manager? Logistics and health are just a couple of reasons I can think of off-hand that make phones a more viable way of communicating.

I agree with what you wrote….lots of people are not lazy, it’s just that they can’t get to a bank……There are fewer banks around these days especially with all the smaller ones closing……It makes it really difficult to even find a branch that actually has a manager who can handle face to face customer queries…..