Last September I reported how a reader – Mrs JS – lost an inheritance of £41,627 when a check written to her was stolen and then deposited into an account at Barclays. The thief had opened an account several months earlier, but barely used it. She then simply told Barclays that she was changing her name to match the name on the check, cashed it, and then withdrew everything but a few pounds.
Barclays told Ms. S. to contact Action Fraud, but it replied and refused to investigate because it saw no possible line of inquiry.
This was despite the fact that the bank had a copy of the thief’s driver’s license, with her name and address, and a recent photo of her using the bank’s online video service.
I asked Barclays why no one had noticed that the check had been altered with Tippex to erase Mrs. S.’s own bank information and enter the thief’s account number. And I asked why no one noticed that the thief didn’t change her name until after the date on the check. The bank wouldn’t provide a detailed explanation other than to say it was following its rules.
Well, since then Ms. S. has filed a complaint with the financial ombudsman service – and she won her case. The Ombudsman concluded that Barclays was negligent in not reporting suspicious activity on the account.
He judged: “The account was opened with very little activity, followed by an unexpected and unusually large credit.”
The Ombudsman added that this ‘combined with the name change to that of a different ethnicity two days earlier should have prompted further review’. And he criticized Barclays for not noticing that the deed changing the thief’s name was dated after the check was written. The bank has now paid Mrs S the full £41,627 plus interest at 8 per cent.
As things stand, the thief and any accomplices get to keep the stolen money. However, a commendable local police officer is still investigating, despite Action Fraud’s dismissal of the case. And Ms. S. has reached out to the Financial Conduct Authority, with the very valid point that it shouldn’t be that easy to change the name on a bank account without the same level of scrutiny that is done on a completely new account.