Loophole in Internet Banking money transfers?.

News 12 09 2009: A Woman inadvertently transferred £2,000 from her own account wrongly to some elses using her Banks Internet Banking System but having reported her error she has been battling for some months to claw the money back. Under current rules Banks must request permission from recipient account holders for the return of money wrongly deposited.

 

While we all make mistakes what a dilemma for the Banking System in that it (1) needs to maintain its reputation in having care towards its customers while (2) could face legal litigation itself should it debit others accounts without the permission of its account holders.

 

If the Lady had “lost” physical money to the value of £2,000 she no doubt would have reported at the nearest Police Station however she has wrongly misplaced it into a locked numbered room somewhere on the Planet. Given that she needs Official “credibility” for her Bank to Officially action events could she not just simply go along to the nearest Police Station with a handwritten statement to sign along with evidence and proof as to Identity to be issued an incident number?. Her Bank could then Officially connect with other Banks in contacting the other account holder advising that a Reverse Transfer of £X will occur on a particular date UNLESS a valid reason be given. Everything being recorded these days with Technology PAID for by consumers/Tax payers why not use it to their advantage!. Of course you’re now going to say that IF the sum be substantial – no problem – I’ll simply withdraw it, close the account down then do a runner to some far-off place like Hongkong like someone did!. Given that the Banking Industry be a Global Affair it needs Common Standards however do Tax Payers not pay substantially for Policing and a Government for help, assistance and measures to resolve our daily problems or is it that we are all to become “Insurance Package Holders” to pay additionally more in off-setting “the less” we get for the taxes paid?.

 

On the matter of Banks “requesting permission” that the lady refers to did Mr “X” authorize a debit of just under £100bn from his account as in the News Story below (News 30 12 2008)?.

Given the <?xml:namespace prefix = st1 />UK’s overall problems costing taxpayers £Billions in protecting “reputations” what would YOU prefer – To laugh with a fool or cry with someone of Wisdom intent on stopping the tears?.

 

OLD NEWS:

 

20 11 2007: Identity theft – Bank account holders may be vulnerable to insurance. Chancellor Alistair Darling gives assurances after the HM Revenue & Customs lost 25 million personal records prompting statements of disbelief and incredulity from the financial industry and the public alike. The cost of identity fraud now stands at £1.7 billion per year. The government has emphasised that there is no need to close bank accounts while some are concerned that account holders be open to insurance that purports to protect against the financial damage of identity theft.

 

News 30 12 2008: Student's £100bn overdraft shock. Mr “X” on Tuesday morning found that his Bank “Y” had debited his account twice showing two separate withdrawals of around £50bn making the balance on 30 December of just under £100bn. In contacting his Bank he was passed from pillar to post in making the error known and received £10 in compensation for the phone calls made. The bank said a "technical error" was to blame and apologised. Did Mr “X” authorize this withdrawal?.

 

18 01 2009 Treasury seeks new banking solution. Gordon Brown - frantic efforts continued through the weekend to put together a second bail-out for Britain's high street banks. The Treasury said that it was looking at "a range of options" where one proposal said to be "in the mix" was a taxpayer-backed insurance scheme that would pay out to the banks if the value of their so-called "toxic assets" fell below a certain level.

 

News 19 01 2009 : Anger at account fraud (Staffordshire News). A FRAUD investigation has been launched after a stranger went into a bank and changed the personal account details of customer. Mr “X”, 63 years old, who has lived at his current address for 24 years only discovered he had been targeted when he tried to carry out a telephone banking transfer. He went through a set of security details with Bank “Y”, but was amazed when the member of staff on the other end of the phone told him his address had been changed to a house in “Z” more than 150 miles away. A switch of his details had been made at a branch in the same area. Mr “X” is furious that someone managed to go into a branch and change his address without him knowing and said "How someone went in there and claimed to be me to get access to my account I do not know, but they were given all my bank statements.”; "I've made lots of calls to “Y” but nothing has been sorted out. I'm disgusted with the way they have treated me and the mere fact that this has even happened.". A customer of 12 years standing stated "Everything with my address on either gets burnt or shredded. None of my details leave my house.”. He added: "I haven't been able to sleep properly and it has cost me a lot of money in phone calls trying to sort this out.”. Thames Valley Police said: "We are looking into an incident of fraud by false representation. At the moment we are awaiting more details of the branch concerned.".