Internet banking scam

Everyone’s worst nightmare.

In the letters to the editor of the Law Institute of Victoria Journal (May 2016) was the following horror story.

“I transferred $10,700 to a client by electronic funds transfer. Two weeks later the client contacted me and asked where the funds were. On checking my records, I found that the funds had been transferred to the wrong account. I immediately reported this to my bank. I was mortified that I had made such a terrible mistake.

Some four weeks later and after I had contacted the Financial Industry Ombudsman with a complaint regarding the bank’s tardiness in responding meaningfully, I was contacted by the fraud department of the bank with the startling information that I had keyed in the correct account details, but a virus on my computer known as “Man in the Middle” had converted the information to another account number for the fraudster’s personal use.

The good news was that the bank refunded the money. I recommend that practitioners who use internet banking to transfer funds to clients from their trust account carefully check the account number revealed by the receipt after the transaction has been completed.”