Bank Insisting I tell them why I am making a Payment to my Daughter

[Gaggley]

I usually do my banking online but thought it would be easier to set up a standing order by calling First Direct today. After going through security, I was asked a number of questions about whether I had been forced to do this, had I been told to download software, was anyone watching me online etc. This is irritating, as it is incredibly unlikely that anyone who was being scammed would say yes, but I answered them none the less.

I was then asked how I had been given the bank details. I said that I had made the transfer before, but still had to give specific details as to how my daughter had given me the bank details, that I had successfully made manual transfers to multiple times over many years. After we'd got past this, I was then told I had to tell them why I was paying money to my daughter. I declined to answer, and was prevented from setting up a standing order. Complaints department confirmed that this was their procedure and they were knowingly preventing me from moving my own money around.

I asked them how much fraud they could quantify had been prevented by these arbitratry measures, they could not answer. But if I had done this myself online, then I would not have to justify my own decisions, could just do it at the drop of a hat. Bloody annoying. But a real problem for people who can't manage to use online services, who are forced to give up their privacy by rules like this.

Does anyone have a bank that will allow you to make transactions over the phone without justifying how they spend their own money, as I would like to switch to them?

Are you really unable to see why it helps you if the bank check you got bank detalls directly from someone you know rather than a scammer?

Many questions help you, but not every question is designed to "help" you and that is a strange expectation. Some are needed to perform the transaction (timing, amount, payment info), some to check you are sending funds to the right place (name matching), some to check you aren't being scammed (where did you get bank details, why sending) and some to add basic fraud/ terrorism/ money laundering checks (more "why", problematic "to" account, sanctions check, delay to check suspicious info) etc. Checks have been done for decades; now more are done, not sure why it excites you particular now?

Sorry, but I don't understand why you simply could not tell them? Am I missing something?

This may have happened even if doing it online. I've been shifting money around recently (not there IS enough interest available to make it worth bending over to pick it off the floor!) Several times I've hit a delay and had to 'go through security', either online or from a phone call.

We want our banks to recompense us when we're scammed. This is part of the deal.

Did they ask your relationship? Or did you tell them she is your daughter as it may well look suspicious if you have been doing this for years.

These questions are asked for 1 fraud prevention 2 to stop money laundering and terror support as it’s not just illegal money used for that contrary to what people may think and often can be a lot of small transactions not just big ones. And as donations had a lot of bad press recently due to corruption that falls under the same thing it’s not unreasonable to ask you this.

You could have just said she is my could and can’t live on what she earns.

The banks are under a lot of pressure to prevent fraud, and they are doing the right thing in my opinion. It may seem intrusive but they are doing it to protect you.

I’d do cash if at all poss. Taxman’s watching.

Yes i use Halifax with telephone banking, i go through an automated beginning then i speak to a person , who confirms whilst they are setting it up, i then get a txt saying will take 2 hours to go through call back if want to stop it within the hour, never had any problems.

When I was buying my first house I went into a Natwest branch to transfer the deposit over to the solicitors, I took my bank card and 2 forms of ID. The cashier said they couldn’t send over more than 10k in branch. But if I stepped outside I could just do it on the banking app instead 😂

I also left FD as I hated the faff on for even the smallest thing. During Covid when branches were shut, I had just changed my name via deed poll. I went round and round in circles trying to get someone to send me a form or an address to send my deed poll certificate off to. They constantly replied with instructions on how to change address instead 😏

This

Honestly no hsbc are just as bad. I’ve encountered the same problem. My mother in law also tried to transfer money to my husband but the bank were so nosey with her she ended up in tears! She’s 70+

The banks smell money laundering everywhere. It's out of hand. I've been made to jump through ridiculous hoops to transfer some money to a nephew. Apart from the bother all this ridiculous compliance costs money! Apparently high street banks set the bar as low as a few hundred pounds.
Meanwhile the City and property market is a laundromat for oligarchs, international criminals and bent overseas politicians.

Coz it’s NONE of their bloody business.. that’s why !!

I know how you feel. I went in the bank to tell them I wanted to draw out a cash lump sum (£3k) later in the week and asked them to have it ready for me in an envelope. I did this so they didn't have to count it out with people watching. When I went to collect it I was interrogated, what I want it for, anyone forcing me, waiting outside for me, that sort of thing. They made so much fuss that everyone in the queue knew I was leaving with a lot of money. Exactly what I wanted to avoid. They made me feel vulnerable.

You're only allowed to give £3k per year - was your amount exceeding this?

I always hated calls like this. don't refuse to answer the security questions and then complain when you don't get what you want. Online is over a secure connection, encrypted, with you signing papers at some point verifying all your information, putting in passwords, other security measures, etc. Do you know how easy it is to find a card or checkbook, pay $40 to look up all someone's information, call the bank, pretend to be them and take all their money? It is extremely easy. much harder online. Which is why code words and blocks are set up for phone calls, which no one ever remembers their code words and then complains about you protecting their money.
Scams are extremely prevalent. Especially the one where someone calls or texts pretending to be a family member in distress and needing money right away.
Every time I send money online I have to check multiple times that I know said person, that I put in the correct information, etc. Why should it be different on the phone.

Though if she’d been able to do what she wanted via the app then the call wouldn’t have been necessary, or the security checks. So the checks are mainly just the theatre and box ticking, so that FD can be seen to have done the right thing if something does go wrong. There’s little proportionality to the level of security and the transaction. Customer service wise, as an FD customer of over 30 years, they were once class leading, but now not so much in my experience. They definitely need to spend money on the app!

FFS they aren’t asking to be nosey they are safeguarding customer’s money! Honestly what is so hard to understand. There are patterns of behaviour in certain fraudsters and the common denominator is almost always being paid in huge amounts of cash. They want to check people aren’t being scammed like so many before them

Not this old chestnut again…as covered early in the thread you can give away as much of your money to who you like as often as you like.

When I took £5k in cash out of HSBC they asked me what it was for. I said entertainment 😂

Of course they are protecting themselves. Usually it is the bank that is on the hook for these things.

'because I want to'.

It isn't hard. I had to do this to transfer money to a joint account with my husband. You might be surprised, but it does result in some vulnerable people revealing information that suggests they are being coerced.