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'Telkom' Banking Scam - Cheque Fraud 26 January, 2009 The Office of the Ombudsman for Banking Services has urged consumers to be alert to the various scams perpetrated by criminals. One of the scams recounted is the case of Mr Andre Nel, the owner of a small business in Cape Town. Nel banks with First National Bank. During October 2008, Nel's secretary, Monica, received a call from a person who introduced himself as the Billing Inspector from Telkom. He advised the secretary that Nel's company was entitled to a billing refund from Telkom in the sum of R 2 252.89. He further stated that an amount of R73 401-89 had erroneously been paid into Nel's company account. He advised the secretary that he would fax the company a formal letter setting out the position in approximately two days time. Two days later, a fax arrived purportedly from Telkom SA (Billing Inspector) advising the company of the overpayment and requesting the company to pay the difference of R 71 149.00 into the Telkom Inspectorate account. The account number and branch code of the Telkom Inspectorate Bank account with ABSA Bank was included in the letter. The letter was signed by the Billing Inspector as well as the Tax Controller. Nel, in good faith and accepting the letter at face value, arranged for an Internet transfer to be made from the company account at First National Bank into the "Telkom" Inspectorate's account at ABSA Bank in the sum of R71 149-00. The next day Nel was informed by First National Bank that the cheque deposited into the company's account for R73 401-89, and purportedly from Telkom, was a fraudulent cheque. The sum of R 73 401.89 credited to his account would have to be reversed. The "Telkom" bank account at ABSA Bank was immediately frozen but R 33 000.00 had already been withdrawn. Nel complained that his bank, First National Bank, should not have immediately cleared the cheque deposited, leading him to believe that the cheque was genuine. The holding period or ENC (effects not cleared) on cheques deposited into his account is usually five days. He did not instruct his bank to uplift the hold period of five days nor did his bank advise him that it had decided to reduce the hold period from five days to one day. Nel felt that this action by FNB led directly to his loss. FNB bank concedes that it had reduced the hold period on cheques deposited into Nel's account without notifying him, but that it was done to assist Nel who, in the past, continuously requested the bank to clear his cheques so that he could conduct internet banking. Furthermore, that this decision to reduce the number of days was taken due to the good business relationship between the Bank and Nel and the fact that the account is well conducted. Further investigation established that the "Telkom" account with ABSA Bank was an exemption 17 account. In terms of the Financial Intelligence Centre Act (FICA), an exemption 17 account is an account where only the identity of the account holder is verified and not the address of the account holder. However, there are certain restrictions on such an account, one being that the daily amount that can be withdrawn is limited to R 5000.00. In this case, the "Telkom" account holder withdrew the sum of R33 000.00 in one day, thereby contravening the provisions of FICA. Nel contended that this lack of oversight on the part of ABSA also contributed to his loss. The Office of the Ombudsman held both banks to have been negligent and ordered them to compensate Nel in the sum of R 33 000.00. The banks disputed liability both claiming that Nel had also been negligent. In the event, the banks paid Nel the sum of R 16 500.00 in settlement, which he accepted. Consumer Tips
For more information about the OBS contact the Call Centre: 0861OMBUDS (0861 662837). |