Grandfather who lost £100,000 to ‘incredibly convincing scam' refunded by AIB over bank transaction

Irish Independent

3 days ago

The 70-year-old, who does not want to be named, thought he was investing in a three-year bond in May last year to save money for his children and eight grandchildren.
He had gone into his nearest branch of AIB to carry out the transfer of £100,000 (€116,000) to what appeared to be a legitimate account with a major UK bank.
The man realised a year later that he had been the victim of a scam, and instructed National Fraud Helpline solicitors in a bid to get the money back.
This week, the firm announced that it had been successful, and the man has now been refunded his £100,000 by AIB, along with interest of £9,446.58.
In addition, AIB has awarded £1,000 to compensate for any distress and inconvenience caused.
Despite the happy outcome, the victim wishes to remain anonymous as not even his immediate family know about his misfortune.
'I'll now put the money somewhere safe, like into my savings account,' he said.
Leo McGowan, a lawyer at National Fraud Helpline, said: 'We're delighted that our client has been refunded in full and got the additional interest.
'He is both pleased and relieved. It's been an incredibly stressful time for him thinking he had lost such a large sum of money.'
The lawyer said that he felt the case was 'particularly strong' as the firm believed there should have been checks carried out on where the money was being sent to.
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But he added: 'Credit to AIB who have now resolved this issue fairly and in good time.
It was an incredibly convincing scam that shows anyone can fall victim to fraud
'It was an incredibly convincing scam that shows anyone can fall victim to fraud.'
The saga began when the man found details online about an M&S Bank bond paying an annual return of 7.5pc, which is unusually high, over three years. It turned out to be a fraudulent scheme.
The fraudsters, who were based in London, asked him to transfer money from his Santander account to his AIB account before making the investment.
He was sent a convincing M&S Bank application form, along with other bank literature that made him believe the investment was legitimate.
The fraudsters even insisted the victim should send them proof of identity and a utility bill, which confirmed him in the belief that the process seemed above-board.
The documents said the investment would be covered by the Financial Services Compensation Scheme up to £85,000.
After supposedly passing identity and money-laundering checks, he went into his branch of AIB to transfer the money to the account he had been given.
He realised he had been the victim of a scam a year later and that the bond was not a legitimate M&S Bank product when the first interest payment failed to come, and telephone numbers associated with the scheme stopped working.
AIB declined to comment on its decision to refund the customer following the in-branch transaction.
But a spokesperson said: 'While AIB Group can't discuss individual cases, we are strongly committed to protecting our customers from fraud, making them aware of the latest scams, educating them on the best ways to keep their money and details safe, as well as supporting them if they do fall victim to fraud.
If a customer suspects they have been a victim of fraud, we urge them to contact us as soon as possible
'If a customer suspects they have been a victim of fraud, we urge them to contact us as soon as possible, as this allows us to mobilise an immediate investigation and support.'
An M&S Bank spokesperson said last month: 'Protecting our customers from fraud is an absolute priority for us.
'We'd encourage customers to review the online security and fraud advice on our website, and follow guidance from Action Fraud, to ensure they remain vigilant and up to date on common scams, such as investment opportunities which can seem too good to be true.'