Police report Nationwide to watchdog for allowing fraudsters to operate accounts

RG2015

This is very a very interesting article in the Telegraph.

The fraud itself just reinforces the need for everyone to be diligent when paying money online. But the really interesting element is the police reporting Nationwide to the FCA for not effectively carrying out basic due diligence.

KYC and anti money laundering legislation puts us all through multiple checks and controls to open a bank account. And yet fraudsters can do it with apparent impunity.

I am sure it is not just Nationwide, but how can they be compliant with KYC and then say that they do not really know anything about their customer.

http://www.telegraph.co.uk/personal-banking/current-accounts/police-report-nationwide-watchdog-allowing-fraudsters-operate/

Nebulous2

My experience of opening an account with Nationwide was quite chaotic. It was a while ago, but they sent through all the cards and pins and then sent a form asking for a signature, which I signed and took into branch.

More recently I opened a new account, possibly to be used as a donor account. Again the card and the pin appeared, I transferred some money in and started using the debit card. Then a letter appeared asking me to give a specimen signature and take it into branch. I've ignored it, on the basis that they already have a signature, and there hasn't been any follow-up.

They're good in a lot of ways - but admin isn't their strong point.

agrinnall

I'm not convinced that the FCA would accept a report from an over-zealous police officer about one instance of fraud. Which might explain why Nationwide have heard nothing from the FCA.

System

Nebulous2 wrote: »

My experience of opening an account with Nationwide was quite chaotic. It was a while ago, but they sent through all the cards and pins and then sent a form asking for a signature, which I signed and took into branch.

More recently I opened a new account, possibly to be used as a donor account. Again the card and the pin appeared, I transferred some money in and started using the debit card. Then a letter appeared asking me to give a specimen signature and take it into branch. I've ignored it, on the basis that they already have a signature, and there hasn't been any follow-up.

They're good in a lot of ways - but admin isn't their strong point.

The signature thing isn't important.

Lots of organisations don't have them on file and will ask for iD should the need arise.

Mchambers

They need a Go-To bank Eagle on their staff !!:rotfl::rotfl:

clivep

Nebulous2 wrote: »

My experience of opening an account with Nationwide was quite chaotic. It was a while ago, but they sent through all the cards and pins and then sent a form asking for a signature, which I signed and took into branch.

More recently I opened a new account, possibly to be used as a donor account. Again the card and the pin appeared, I transferred some money in and started using the debit card. Then a letter appeared asking me to give a specimen signature and take it into branch. I've ignored it, on the basis that they already have a signature, and there hasn't been any follow-up.

They're good in a lot of ways - but admin isn't their strong point.

We've been Nationwide customers for many years but when opening our Flexdirect accounts they still wanted specimen signatures.

For the sole a/cs the signatures were requested after the a/cs were opened. For the joint a/c they required the signatures before opening the a/c.

The specimen signatures were sent back in the reply paid envelopes provided.

MiserlyMartin

Nationwides internet security is very lax. They use those card readers which any idiot can hack and are only an annoyance to the customer in ease of use. They need to get with the times and beef up security. Not suprised the police have complained

Robisere

When I was a NW account holder I had a Card Reader. When I switched my account, I asked NW if they wanted the Reader back. "No you can use that with any other bank if you wish." (!?) I Boggled, then Googled and got this info:


" Which banks use card reader?

A few of the major banks:

• Royal Bank of Scotland - yes.
• Barclays - optional service.
• Halifax - no (they use automated phone calls)
• Lloyds - no (as with Halifax)
• Co-Op - yes.
• HSBC - no (use a standalone code generator)
• Nationwide - yes (technically not a bank) "

So 'any other bank' not true, as they don't all use them. Although my current bank does, I have no intention of using it. Anything I can do with a Card Reader, is better, safer and more efficiently done online or at my nearby branch. "Nearby branch" is one reason why I switched from NW: they closed them all.

RG2015

Robisere wrote: »

When I was a NW account holder I had a Card Reader. When I switched my account, I asked NW if they wanted the Reader back. "No you can use that with any other bank if you wish." (!?) I Boggled, then Googled and got this info:


" Which banks use card reader?

A few of the major banks:

• Royal Bank of Scotland - yes.
• Barclays - optional service.
• Halifax - no (they use automated phone calls)
• Lloyds - no (as with Halifax)
• Co-Op - yes.
• HSBC - no (use a standalone code generator)
• Nationwide - yes (technically not a bank) "

So 'any other bank' not true, as they don't all use them. Although my current bank does, I have no intention of using it. Anything I can do with a Card Reader, is better, safer and more efficiently done online or at my nearby branch. "Nearby branch" is one reason why I switched from NW: they closed them all.

It’s the card that provides the security not the card reader which is generic. It is irrelevant which bank provides the reader which is useless without the card.

eskbanker

Robisere wrote: »

When I was a NW account holder I had a Card Reader. When I switched my account, I asked NW if they wanted the Reader back. "No you can use that with any other bank if you wish." (!?) I Boggled, then Googled and got this info:


" Which banks use card reader?

A few of the major banks:

• Royal Bank of Scotland - yes.
• Barclays - optional service.
• Halifax - no (they use automated phone calls)
• Lloyds - no (as with Halifax)
• Co-Op - yes.
• HSBC - no (use a standalone code generator)
• Nationwide - yes (technically not a bank) "

So 'any other bank' not true, as they don't all use them.

That's a particularly pedantic interpretation - their comment was clearly intended to convey that you can use it with any other bank that uses card readers, they're hardly trying to claim that every other bank uses card readers!

Robisere wrote: »

Anything I can do with a Card Reader, is better, safer and more efficiently done online or at my nearby branch.

But the point is that some Nationwide online transactions need the card to be used (in the reader) to generate a unique code so it's not either/or. And as for seeing it as more efficient to visit a branch instead of conducting transactions at your convenience at home, well, I think you're on your own there....