FNB loses R2.9 million case against own client who says he was victim of lottery scam

wheeloftrash

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Jun 20, 2005
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They made credit it seems for 2.9Million.
FNB wants him to pay for it.

The article mentions that he couldn’t even qualify to borrow R6000?

“This was even though he had a R5,000 withdrawal limit on the account and claimed he could not even secure a R6,000 loan from the bank to start his own small business because he had no income.”
Thanks for making it make sense. I was confused as to why fnb were suing him.
 

Grubscrew

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Who writes these articles? No wonder they only say staff writer. We are left without presumptions and speculation after reading the article. Rather stick to technology reporting.
Sometimes you have to report verbatim what an advertiser replies to your questions, it is called reporting.
 

_TrXtR_

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Jul 11, 2006
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Yet FNB is one of the more popular banks

I have a dedicated FOREX account with them. Its very simple to operate. I never get asked for proof of where the money is going or what it is for. The young lady at the bank who demonstrated the operation at one of their ATMs said she thought (was not sure but just giving advice) that I should not pay more than R1m at any one time, or it would "raise a flag"

Other banks want your bona-fides in triplicate before allowing you to spend more than $1
I believe SARS gets a notification if 1 million transaction is done. Maybe I recall wrong, it could be 5.
 

neoprema

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Whenever i heard a story of someone being defrauded in "strange" circumstances where the security they expected to be in place did not work for some reason, its usually FNB.
 

system32

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They made credit it seems for 2.9Million.
FNB wants him to pay for it.

The article mentions that he couldn’t even qualify to borrow R6000?

“This was even though he had a R5,000 withdrawal limit on the account and claimed he could not even secure a R6,000 loan from the bank to start his own small business because he had no income.”
R2.9m is an insane limit.

Could also be an insider that increased the limits - there should be an audit of this kind of change.

A few years back I had a standard bank increase my overdraft limit from 0 to RRR without consulting me in order to process 3 fraud transactions.
After I pointed out the error on their part, they acknowledged fault and I was able to get all my money back with fuss.
 
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j4ck455

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Sounds like the account was "hijacked" and used to funnel funds through defrauding people.
That sounds like the most likely explanation, something like this: the account had been dormant and was subsequently used by criminals to receive money stolen from other accounts (not necessarily FNB accounts).

Maybe FNB suspected (but could not prove) that the account holder was one of those criminals, or had been paid by a syndicate to provide the syndicate with a bank account they could use to receive money stolen from other accounts.

Whatever actually happened, the "error" that FNB was trying to downplay, and that the judge reasoned to be far worse than what FNB was trying to spin, would most likely have been exploited with inside help provided to the criminals by one or more FNB employees.

One can only speculate without detailed information.

It was a total failure on the bank's part. The cream on top is then trying to blame the customer for "damages" even if the customer was indeed negligent in providing details to the scammers.

Rather, if the bank really wants to recoup these funds, let them do some introspection and see if they can sue someone internally for sleeping on the job. I can't believe all they have to say for this is "error", am glad the judge didn'y buy that nonsense.
The fact that FNB decided to take the account holder to court, and tried to recover money from the account holder, suggests there is a lot more to this story that neither the account holder nor FNB are letting on.
 

Tpex

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Wow, that's low for the people's favourite bank.
So glad I don't bank with them
 

saor

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And it took the poor guy 6 years to fight this. FNB you should be ashamed!
It boggles that they'd pull this **** over an amount that's petty cash to them. Even if they just used writing this off as a PR stunt to generate goodwill but no...had to spend 6 years in court.
 

markings

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I change my credit card details to pay R100 into an overseas account. The bank is on my phone within minutes.
No matter what the limit is how is it possible to pay 2.9 million from an account that has virtually nothing in it.

If the transaction falls into the time where FNB had a problem then I'd also suggest that it was an inside job.
 

Joe Average

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FNB might appear as a bank with tech-leading products and services, but their back-office IT infrastructure is old and obviously full of security risks. I would stay away from anything they offer, just a shiny marketing coat with no secure infrastructure to back it up. The same goes for Wesbank, brilliant marketing, no tech substance to back it up.
 

das Toktokken

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Excellent news....

"Judge Andre Petersen this week threw out FNB’s case after the bank explained its computer software that was supposed to block unlawful payments experienced a failure between 18 October 2015 and 21 October 2015."

Nope, that wasn't accidental @FNB. Inside job possibly or compromised systems. As an FNB client I would be afraid. FNB joining ABSA.
 

Louis72

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FNB might appear as a bank with tech-leading products and services, but their back-office IT infrastructure is old and obviously full of security risks. I would stay away from anything they offer, just a shiny marketing coat with no secure infrastructure to back it up. The same goes for Wesbank, brilliant marketing, no tech substance to back it up.
Facts. Back end systems constantly have some sort of issue. Sticky tape and a prayer.

Even old banks like Absa and Standard that inherited old legacy systems perform way better to modernise.
Case in point.
 

ThinkCentre

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FNB was once a nice bank! Their study loan department is pathetic with customer services too!

If you are looking for a bank, FNB is not it!
 

Swa

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Maybe it’s early but I don’t understand what’s going on here.

Scammers withdrew R2.9m from his account and FNB demanded he pay it back?
Overdraft? In any case it looks like their systems failed so that there was no limit at the time instead of the usual R5000. What I don't get is how it took 6 years to explain that for the case to be dismissed.
 

PsyWulf

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The judgement is at http://www.saflii.org/za/cases/ZANWHC/2021/63.html

They got their asses neatly handed to them by a judge
So the TLDR here

Notes:
Account was dormant
Account had a daily limit of R5000
Account had a monthly limit of R999 999
The transactions reflected on the bank statement only a month later (30+ days) * this is also an important point
Somehow 2.9Mil got transferred out during a VERY small window of 3days where the "limits enforcement" was not working,exceeding the 0 balance,daily limit,and monthly limit
FNB said due to their contract with the user he is responsible for any transactions from his account and not reporting them within 30days

In judge's verdict:
FNB had a duty to enforce limits,or query transactions on a dormant account above those limits
Both parties were to blame however,FNB's inaction finally caused the actual loss
FNB *killblow*
 
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