Beneficiary of fraudulent funds

moscheeno

I was paid for goods from an account using the faster payments service.
I sent the goods out.
The bank say the funds were taken from an account without the account holders knowledge so they have frozen my account and now recalling the funds.
The problem is, I have sent out the goods and have proof so am left at a considerable financial loss.
What recourse do I have to reclaim these funds?
It is not my fault the bank allowed their system to be broken and funds sent to my account.

societys_child

Which bank allowed their system to be broken, what bank were the funds sent from?

What recourse do I have to reclaim these funds?

Find whoever committed the fraud?
How was contact made, what selling platform did you use?

moscheeno

The platform was localbitcoins.com
I sold bitcoins. I know banks dont like crypto currency dealings but it shouldnt matter what the product is.
I delivered a product and received payment from a UK direct debit account.
Surely the bank who sent the funds should take responsibility.

moscheeno

I know one of the banks was Lloyds, which is my bank too. They wont say who the other bank was.
Just keep fobbing me off with 'we need to investigate more'.
I have shown them all receipts and transcripts for those trades.

[Deleted User]

They are not fobbing you off, they simply need to investigate what they regard as suspicious activity. They won't reveal any details to you while the investigation continues, so you'll just have to be patient and hope the investigation reveals no wrong-doing....

moscheeno

I know but it is quite frustrating as they have implied that the funds that have been recalled wont be given back and so I will have lost out on the goods I sent out.
Hence, I am a victim of fraud myself.

Bermonia

Exchanging one currency for another is hardly the same as goods - as such your rights in the matter will be reduced.

You will just have to be patient and await the outcome of their investigations.

fwor

moscheeno wrote: »

I was paid for goods from an account using the faster payments service.
I sent the goods out.

As above, exchanging virtual currencies does not come under the definition of "selling goods".

If you insist (to the bank) that you were "selling goods" then they will view you with suspicion, because they will see that as a misrepresentation of what you were actually doing.

moscheeno

I have told the bank I was selling crypto currency which I view as goods.
I nver once said I was selling anything different but surely it doesnt matter what you are selling as long as it is not illegal?

fwor

moscheeno wrote: »

I have told the bank I was selling crypto currency which I view as goods.
I nver once said I was selling anything different but surely it doesnt matter what you are selling as long as it is not illegal?

Your view isn't really relevant here - crypto currency exchange is not "selling goods".

One of the main problems with "backstreet" crypto exchanges (I guess this is a fair description of what you were doing) is that they can be used to circumvent money laundering controls. That is not in anyone's interests (except those who have fraudulently obtained money that they need to launder).


[Edit: by the way, if you want this to be viewed more widely and get a better balance of advice and opinion, you would do much better to put it in the "Budgeting and Bank Accounts" subforum - this really isn't the correct place for it.]

societys_child

I . . . received payment from a UK direct debit account.

What does that mean, where does D/D come into it, you said faster payment in your OP?