Banking fraud

I have to say, it is quite worrying. You hear a lot nowadays about people being defrauded out of large sums by cunning gangs. Typically these people get in touch by phone, claim to be the bank (or the police), and persuade their victims to transfer money into another account that the fraudsters control. The victim is, by a mixture of clever psychology and very clever tech, led to think that it's their bank on the line, that there has been a 'security breach', and that their usual bank account has been compromised.

To keep their money 'safe' they are instructed to move it into the fraudsters' account - but of course the victim thinks it's a freshly-opened account in his or her own name. It doesn't matter that the victim is super-intelligent, or has heard all about this type of fraud; in the urgency of the moment they are duped into believing exactly what the fraudsters intend them to believe - to the extent of ignoring genuine pop-up messages from the bank when the money transfer is imminent. They are told these warning messages are 'automatic' and can be ignored on this occasion. And so they go ahead in good faith, and make the transfer - and the money is taken.

Quite often, once the deed is done, the victims realise that they may have been defrauded, and immediately speak to their bank, hoping that the money can be retrieved. But it's gone; probably for good. And despite a new voluntary code coming into operation, all the High Street banks remain likely to accuse the victim of 'gross negligence' and unworthy of any redress from the bank. That can be overcome if the victim is willing to fight, on the grounds that the banks have wanted everyone to bank online, and should therefore shield their customers from fraud. Further, they should be prepared to recompense any customer who innocently falls for these sophisticated frauds. But many a victim just feels devastated and ashamed at their 'stupidity', and their financial loss, and feels bound to accept the bank's view.

Personally - speaking as a bank customer - I think that:

(a) It does fall to me, as a customer, to take great care over how I react to a plausible story being thrust at me out of the blue. As an adult, I have a responsibility to keep a cool head, and think. So if I'm contacted like this, then I'm going to insist on not being rushed. I will end the call, trek over to my nearest branch, and speak to somebody there - in front of witnesses - and enquire what the status on my account really is. That's a rational thing to do, and absolutely not what any fraudster would want. 

(b) It is entirely reasonable to expect banks to look after my money with extreme care. They can afford to set up the best possible systems to thwart fraud, internal and external. It's their fault if they haven't. Their systems ought to be sufficient to keep customer accounts protected no matter what. And if that impenetrability fails, then the bank must reimburse all customers affected.

(c) So a customer should never need to move money around, if told about a 'security breach'. He or she should just stand pat, on the basis that - breach or no breach - they won't suffer a loss, and that any counter-measures are to be the bank's own responsibility. This again would stymie a fraudster.

As you can see, I have it all worked out! But please don't bet on my sticking to plan. I am no different from anybody else, and I'm quite sure that I would be very likely to fall for a well-laid attempt at fraud. I'm not immune from psychological coercion.

Recognising that, I have two defences:

1. A lot of fraudsters seem to make their initial approach over the domestic landline. Well, I don't use mine for telephone calls, and haven't done for some eight years. So I can't be got at that way.

2. I keep only the bare minimum in my bank account. So the balance, after direct debits and standing orders have been paid, is always low. For much of the month, there's nothing worth taking. It's all somewhere else. And not in linked accounts either.

Nevertheless, I mention a lot about my lifestyle on this blog. And much might be deduced from the pictures on Flickr. A careful analysis might allow a fraudster to make good guesses about what I can afford - and therefore how much income goes into my bank account. They can't be sure how much money might be kept in my bank account, but even so, it seems likely to me that an analysis would mark me out as a potential target for fraud. More than likely.

But of course I'm not going to quit blogging, or publishing photos. I therefore do have to accept a definite level of risk.

Is it a big risk, though? It's hard to say. Maybe the two defences mentioned above are working. I haven't been contacted with the classic 'compromised account' story yet. But it could happen in five minutes' time. I must stay on my guard.