ANZ Bank transfer sent to wrong account costs Queensland tradie from Brisbane $5,900

A bank transfer error cost a Queensland mechanic nearly $5,900 after his money was sent to the wrong account despite being a digit short.

Brisbane’s Michael Richards was in the market for a second-hand caravan to take a well-earned holiday in tropical Cairns earlier this year.

After finding one online for $5,900, he arranged payment via electronic wire transfer, then sent a screenshot of the receipt to the seller — who immediately noticed a problem.

The bank account number was one digit short — eight instead of nine digits — the salesperson told Mr. Richards.

The trader then called his bank to let them know within five minutes.

Much to his relief, a manager told him that since the account number was one digit short, the payment would not go through and the money would be returned to his account

So Mr Reynolds made another transfer for the caravan, but weeks later the first amount had not been returned.

“All ANZ told me was that a lead had been found and the money could not be recovered,” Mr Reynolds said. 9News.

Desperate to find out what happened to his money, Mr. Richards walked into a branch of the bank that matched the BSB number he transferred his money to, Suncorp Bank, and asked for $100 to be transferred to the phantom account .

But the bank told him that the number was indeed too short and that there was no account.

Mr. Richards asked the cashier where the transfer might have gone.

“Then the cashier said to me, ‘Oh, but if we add a zero to the front of the number to fill in the ninth digit, that’s someone’s account.'”

The account name used for the transfer is ignored by most banks and really only there as a reference for the account holder.

“Why was my wire transfer processed and $5,900 deposited into a valid account number that differs from the one I provided? And why can banks stop invalid transactions in person and not online?’ asked Mr. Reynolds.

He later received a letter from his bank ANZ stating that it had attempted to recover the money in accordance with the ePayments code but had been unsuccessful.

According to the ePayments code, banks notified within 10 days are required to return funds sent to wrong accounts

The ePayments code states that if a bank is notified of an incorrect transfer within 10 days, the money should be refunded, while the affected amount should be frozen after 10 days pending the recipient proving why they are entitled to it has.

If the banks are not notified until seven months after the transaction, the recipient can refuse to return the money and simply keep it.

After Suncorp was approached by 9News, the money was returned to Mr. Reynolds.

“If a customer accidentally makes a wire transfer, Suncorp Bank works with other financial institutions to resolve it through a dispute resolution process,” said Suncorp CEO Nick Fernando.

“We are committed to acting quickly to minimize customer impact, but sometimes these processes involve multiple parties and can be complex.”

The ACCC is urging Australian banks to incorporate account name cross-checking into their payment software to reduce erroneous transfers and online scams.

Daily Mail Australia has contacted ANZ for comment.