Fraud at ATMs still a thorn in consumers' sides

24 April 2005, Business Times

The office that aims to resolve banking services complaints is now serving you even faster. The Ombudsman for Banking Services released its report for the year to December 2004 this week, and showed a marked decrease in the time it takes to resolve a complaint.

The average time taken to close a file is now 70 days, down from 83 days previously - and this despite a 26% increase in the number of complaints filed (2 885 cases). Advocate John Simpson, manager of investigations at the ombud, says it "sets a world standard".
Of files opened, 56% are found in favour of the complainant.

Maladministration remains the top cause for complaints lodges in 24% of cases, though fraud had replaced misrepresentation as the second-largest single cause for complaint.

Far and away the biggest categories were those concerning ATMs, mortgage finance and investments.

Ombudsman Advocate Neville Melville warns that scamming at ATMs is still prevalent. The main safety tip to remember is not to accept help from any nearby 'good Samaratan' if you have a problem with your card at an ATM.

If criminals get your card and PIN number, Melville says, they sometimes can make bogus deposits, and if the victim is a person of good standing with their bank, are often able to draw on the bogus deposit.

On the topic of mortgage finance, he recommends you get any good interest-rate deals in writing to avoid disputes and disappointment.

Melville says there is one thing that he would like to see happen on his watch, it is that "not one more widow is left destitute" - referring to the life insurance people should take out to cover their home loans.

He says that people assume there is a statutory requirement that the bank insure them when they take out a mortgage bond. This is not the case, and without adequate life insurance, one's dependants could well lose the roof over their heads.

The procedure if you have a complaint is to take the matter to your bank. Make sure your complaint is aired at a high enough level. it does not have to be in writing. Your bank should give you a reference number and they then have 20 days in which to resolve the matter.

If you are still not happy with how the matter has been handled, contact the ombudsman.

The standard complaint form is available from the ombud website and should be available from your bank branch too - as should the details of how to contact the ombudsman.

The complain to the ombudsman must be in writing.