The fraud traps set by your bank
When an elderly couple were robbed of their bank card, and £300 from their account, they were shocked by their bank’s response 
Photograph: GETTY
Nina Branscombe, 82, and her husband Derek, 84, had been robbed in a supermarket vehicle park in Stafford in April. It was a devious crime – two men approached the elderly couple asking for instructions and used a map as a shield to take away Mrs Branscombe’s purse from her handbag.
The theft only grew to become obvious an hour later when the retired account manager realised her purse was missing. By then, the criminals had withdrawn £300 making use of her debit card.
The Branscombes right away contacted the police and their financial institution, Santander – only to be offered a shock. Even though they had been obviously victims of fraud, Santander refused to reimburse the stolen income.
It argued that because Mrs Branscombe had written down her Pin in her diary, she was liable for the fraud – even although it was very carefully disguised amongst other specifics. The pocket diary was stored in the purse to jog her memory. Santander presumed the criminals had guessed which amount related to her card.
The tough-line response was typical of any bank or developing society. Fiscal firms routinely refuse to safeguard clients from fraud if they compose down banking information. Some, this kind of as Santander, say a Pin can be written down if disguised “so it are not able to be understood by any individual else”. In practice, however, it can be practically unattainable for clients to prove this was the situation. Banks also forbid utilizing on the web password managers, which retailer confidential specifics behind a central password.
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For a lot of of us – notably the elderly – recording the details essential to carry out our fiscal affairs is a lot more a necessity than a decision. At the final count, the regular individual had 22 accounts that required 1 or a lot more passwords, in accordance to the Payments Council. A lot more than a single in 6 of us had over forty such accounts. The research was carried out in 2012 and the figures are most likely to have enhanced.
Banking institutions alone inquire for a different Pin on each card, different web and phone passwords, usernames, identity numbers, memorable names, places, dates and so on. We are anticipated to remember them all without having aid.
Crucially, bank consumers are recommended by security authorities to use different passwords for each account. This is to reduce the opportunity of a single safety breach affecting the other accounts.
Prof Martin A Conway, head of psychology at City University London, has researched human memory for 32 years. He explained it was only affordable to allow customers to write down passwords, specifically as our capacity to keep in mind data declined with age.
“Nobody has a ideal memory, almost absolutely everyone has to compose their different Pin and passwords down or record them someplace,” he said.
“The potential to get details in, referred to as encoding, and to draw data out again, retrieval, just does not function as nicely as we get older. We could have previously encoded a lot of numbers in one particular kind or an additional and memorability turns into tough, even for somebody who has set their own passwords.”
The Sunday Agenciesasked the British Bankers’ Association, the industry trade physique, to justify banks’ uncompromising perspective to genuine fraud victims who create down passwords. It explained buyers could opt out of the latest technology if their memory wasn’t excellent. As an alternative, they could request a chip and signature card or use cheques.
However, banking institutions and constructing societies proceed to push customers towards mobile and net banking and the newest debit and credit score cards to minimize their very own charges. This gives them the right to refuse aid if a customer tends to make a record of their identification details, either because they do not know the principles or out of necessity.
Mrs Branscombe said she struggled to remember her Pin and had it with her because she was going to wonderful-grandchildren. The thieves manufactured withdrawals for £200 and £100 and a failed try for £50. Santander refused to pay out compensation due to the fact the Pin was entered appropriately.
Mrs Branscombe said: “Along with the £300 from our card, there was £100 in income in my wallet, which is a great deal of funds when you’re a pensioner. It was an terrible shock.”
She believed her Pin was nicely disguised in her diary and was certain she need to have been watched while entering her Pin to shell out for her groceries.
Mr and Mrs Branscombe’s daughter, Angela Ellis, wrote to Santander, the ombudsman services and this newspaper, asking the financial institution to reconsider. Santander at some point agreed to refund the cash and paid an added £30 as a goodwill gesture.
A spokesman mentioned Santander recommended buyers not to create down or record their Pin, personal security particulars or private information.
“In purchase to aid consumers keep in mind individual details, they can change a Pin to a a lot more memorable quantity, and we also provide multichannel credentials so customers can have the identical specifics for both on-line and telephone banking,” the spokesman added.
“Power of lawyer is an selection, in particular for older consumers, who may possibly want support from a trusted pal or family members member to don’t forget their login specifics.”
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Have you been denied compensation for fraud simply because you recorded your Pin or log-in information? AgenciesFunds would like to hear from you. E-mail or write to us at 111 Buckingham Palace Street, London, SW1W 0DT.
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