Tue Sep 17 05:40:08 UTC 2024: ## Margaret River Business Owner Loses $50,000 in Bank Scam, Blames Bankwest for Lack of Action

A Margaret River business owner is accusing Bankwest of negligence after losing $50,000 to a scam that nearly crippled his business. Pure Glass WA owner Wade Brown claims he alerted Bankwest to the fraudulent transfer immediately, but the bank failed to stop the transaction despite promising to contact the receiving bank, AMP.

The incident occurred in 2022 when two $25,000 payments were made from Pure Glass WA’s account to an AMP account titled “Pure Glassess.” Mr. Brown immediately contacted Bankwest and froze his account, but the funds were successfully transferred to the scammer.

Bankwest claims they contacted AMP within 35 minutes of Mr. Brown’s call, but the transaction wasn’t halted. Mr. Brown, who has been struggling to recover the lost funds for two years, blames Bankwest for the loss. He says Bankwest’s refusal to reimburse him led him to file a complaint with the Australian Financial Complaints Authority (AFCA).

AFCA ultimately ruled in favor of Bankwest, finding that Mr. Brown’s business was at fault. However, Mr. Brown maintains the scam was possible due to a security flaw in the system that required a token code for transactions. He claims the dongle generating the code was kept in a locked room, making it impossible for the employee who received the fraudulent call to access it.

Bankwest claims the scammer accessed the account using a token code sent to the registered mobile number. The bank insists they are committed to customer security but can’t prevent all scams, especially when customers “participate in and authorize the transactions.”

Mr. Brown is still investigating how the scammers gained access to his account. He suspects the scammers may have used a software downloaded by an employee after a fraudulent call from someone claiming to be from their internet provider. The incident highlights the growing threat of online scams and the importance of being vigilant in protecting financial information.

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