Banking Fraud

[happyinherts]

Anyone any experience of bank fraud? My teenager has had his Halifax Cardcash account cleared out. He gave college student services his account and sort code in order for them to deposit £15 a week student bursary and now all his money - christmas, birthday, savings, sport sponsorship and grant has vanished.

Someone has also deposited a cheque for over £775 and promptly spent it - and also £20 cash deposited in Cambs when everyone in our house can prove to be elsewhere all day. Halifax fraud looking into it - anyone any similar experience? Any idea how long it will take to refund money or if it will be refunded. PIN Number in head, never divulged.

Account frozen now so no idea where we go from here.

Advice please

As long as he reported it as soon as you realised he should get his money back.
It sounds as if someone has adopted his account - possible identity theft?
Might be worth asking if Halifax can check to see if credit has been applied for in his name.
Do they still have his correct address as the current one on the account?
If he has any other cards I'd also give them a call to check all is as it should be.

An online banking account was established sometime during December which wasn't originated from this house.

Halifax do have our current address on file but mail either isn't coming through or they've put account on hold. He had deactivated account and asked for a new card, but I think this is now blocked.

I'd call them daily for an update to be honest. I'd probably also put it all down in writing - referencing the original call to notify them, just so you have a proper record.
Definitely sounds like identity theft - you might possibly have some cover (for your address or your family) against that on some of your cards - I'd check to see if you have and maybe get them involved.
Poor thing, not what anyone needs at Christmas.

Also check credit reference report - with identity theft, criminals can open other accounts/credit cards and then leave large debts in your name.

Happened to me - it's ok - he'll be covered under the banking code. You pay the first £50 loss and the bank's fraud dept pays the rest. Just let them know ASAP as they'll want to know his last transaction to start it from there. Not sure what to do about the ID theft part though

Definately check his credit file with experian or equifax just in case loans or credit cards have been applied for in his name elsewhere.

lollystix is right in what they say though.

My Mum got hit with a similar situation and she had everything refunded. The bank were amazing.

The bank's fraud dept have confirmed they will not be taking the case further.

I am gutted and miserable.

They've told my teenager if he can provide cctv evidence that he did not deposit a cheque in Barking, deposit £20 in Cambridge, etc then they will re-open the case. And how is he supposed to do that?

Been to police station today. Officer on desk says they don't have the power to investigate cheque deposits without the co-operation of Halifax. Stalemate.

Been back to Halifax branch. Staff ring fraud dept to be told the same thing, they will not be investigating. Have issued a complaints form re account being used after we told them of transactions and cancelled card use. They are now investigating who deposited the cheque but have no intention of refunding my son his money.

Furthermore when I asked about opening a new account to deposit his Christmas money in, I was told he probably can't open a new account with the Halifax as the fraud dept and police will block address.

Scandalous. Miserable, and not able to do a lot this side of Christmas. Any advice out there

I'm not sure how to help really.
If they refuse to take it further, you can try going up through the formal complaints process. They must have a way to escalate complaints.
You could try publicity - the finance pages in newspapers sometimes have "problem" pages - usually triggers a rapid response.
You have the right to ask for a copy of the paying in slip that was used to deposit the funds in Cambridge (?) - they may charge you. There might be a signature on it.
Have you checked the experian/equifax records? The worry (and I know you don't need more to worry about) is that the £775 WAS in your son's name because someone has drawn credit elsewhere in his name and flushed it through his account
There is no way i would open another Halifax account. Go elsewhere to start afresh.
There must be some reason they are not taking this seriously - you need to find out what it is, and address it from there.

You should complain to the Financial Ombudsman Service. They have the power to make banks do things they don't want to do! And pay out if they are in the wrong. My former colleague's husband was a bank manager and he hated them!

link

One major reason they are not taking this seriously is that he is a seriously shy teenager who only answers yes and no on the telephone and isn't pushy enough, therefore he's been fobbed off. Fraud dept REFUSE to believe it wasn't a family member that paid in account and withdrew it. I can prove we were all in work in different areas but I'm not allowed to because it isnt my account and data protection, etc.

I have gone through the compaints procedure, although as far as I know the saga of the deposited cheque and subsequent withdrawals might be investigated but his money prior to that will not be refunded.

Credit reports seem to be in order. He is a teenager with no income and no credit rating.

I'm pretty sure the ombudsman can only get involved when you've exhausted the banks formal complaints process - there are specific timescales laid down which most banks have signed up to - no idea if Halifax have but I'd be surprised if they hadn't.

BustersofDoom - thank you so very much for the link. it does seem that Ombudsman gets involved after the banks formal complaints procedure. I dont know how long that all takes, but wheels are in motion and I have to sit tight. I will indeed go down that route if all this fails.

That is outrageous. I used to be a bank manager and those are classic fraud red flags.

You are doing the right thing by complaining. I would have sat in the branch refusing to leave until they agree to investigate (but I am a stroppy old baggage). They have 8 weeks to respond. If they do not reply to your satisfaction or go over the 8 weeks you should take the case to the Obudsman.

I would also be tempted to contact the newsdesk at Guardian Money.

I have never worked for Halifax but I have spotted an attempted cheque fraud and the investigating officer said it was a huge fraud of stolen insurance cheques deposited in several banks and that Halifax were the worst for cooperating with the investigation.

Yes - ombudsman is an option. Costs a bank £500 to even get involved in investigating a case - often 'the view is it's more coat effective to pay up than start the fight. My advice is to find out the address for the executive complaints department or the name and address for head of retail banking - direct the complaint to them. They will pass to the HQ complaints department and you will get a more thorough (and probably happier) response.

Cost - not coat.

Are you 100% sure he didn't divulge his pin. And all that money can't be cleared in one day, how long before he noticed? How much money in total has he lost?

Yes I am sure he didn't divulge his pin. He never used the account at all. Only noticed when Halifax sent a statement. Money was saved for 16 years for life's larger eventualities. Was going to be driving lessons / car after xmas. He lost £1775. No one said the money was cleared in one day, but lots was after he reported it on Dec 12th.

He should definitely get back what was taken after he reported it, don't let go!! Maybe write to the papers money agony people & they will probably get the money for you.

The money taken after he reported it wasn't his. Someone deposited over £700 in his account and subsequently withdrew it over a week in different branches. Account down to £2. They then deposited £20 cash in Cambs and withdrew £10 the same day. These transactions were after fraud reported but technically not my son's money. Anyway I'm waiting for my complaint on it to be acted upon and then it's up to the Ombudsman to take over.

How the heck a teenager can provide cctv evidence of cash point machines in Barking and Cambridge without co-operation from Police and Halifax is beyond me, and quite frankly the local branch were shocked at the way we've been treated.

Don't worry, I'm not letting this drop.

I do not have the link, but the FSA rules are that the bank have to show that your son committed the fraud - you do not have to prove otherwise. They are in the wrong in their approach. If your son is unable to fight this, then he can give permission for you to argue on his behalf.
Remember, it is the banks responsibility to show that he gave the PIN away, they have to prove you were responsible, or accept it was fraud. If fraud, they are required to refund the money.

happy I really feel for your son, from what you are saying I believe they are not taking it seriously because of his age. This happened to me a long time ago (early 1990s) and although money was being withdrawn from ATMs which I had no access to at the times shown on transactions the bank and police would do nothing. Obviously it was at a time before card fraud was at the high it is now, however it was till known that cards could be cloned etc. I lost around two month salary (like your son money was still being taken when a block was supposed to be on the account). Looking back on it now I know I wasn't treated the same way someone in their 20s or 30s would have been, my concerns were just brushed under the carpet. I hope you manage to get this sorted.

What an appalling attitude by the Halifax. I got a Barclays bank statement one saturday about two years ago which showed a £60 Vodaphone top up. None of my family have vodaphone, so, monday lunchtime I went into Barclays who showed me two online purchases in germany and two more vodaphone top ups in the following 48 hours (totalling over £600). They immediately blocked my account and cards, sent me a six page questionaire to fill in, basically asking who lives in my house, has access to my cards/bank details, Could I prove where I was at certain times and the IP number of my PC. They refunded all the monies within six days and issued me with new cards. To this day I have no idea how someone got these bank details as the fraud happened on the account I use to pay my direct debits, not my everyday account.
I would definately complain to the banking ombudsman and go back to the Halifax and kick up a storm.
Your son could prove he didnt deposit the money or withdraw the cash by getting a witness statement from someone who could prove he was elsewhere at the exact time the deposit/withdrawal took place.

Update - letter from Halifax today confirming they will refund all money missing from my son's account plus £100 compensation as they now accept there was fraudulent activity on account.

BUT.... (you couldn't make this up)

They closed the account before Christmas owing to fraudulent activity and now have paid the refund money and compensation money into it. Can you believe that? Have no access to this account whatsoever. Letter in post said they would refund it within 5 days, letter sent second class and dated 9th Jan - money already refunded before we received letter.

Another trip to local branch who on ringing the fraud dept were utterly speechless and suitably embarrassed. Now awaiting email confirmation from fraud dept to take ID into local branch on Monday and we will be given a cheque. Any bets this will happen?

Seriously in despair.