Starling Bank Lax Approach to Fraud

dave_ctf

I hope this post is allowed and is in a suitable category.

I've just been amazed at how poorly Starling Bank have treated a fraud report. My daughter was tricked into making a payment from a QR code in a car park for a subscription that is nothing to do with the parking payment (don't scan these codes, it's well known that they get replaced by criminals).

She reported this and Starling are claiming it isn't fraud because she entered her card details into the fake website that the QR code directed her to. Hmmm well as far as I can see,  being tricked into a payment for something you have no intention of buying is fraud.

I got her to call Starling back and insist they treat this as fraud. They are refusing to. They are issuing a new card (and my daughter has already blocked the current card in the banking app) but that is missing the point - they are not accepting responsibility for any other fraudulent activity that might happen on her account now that they have been notified.

My daughter has now raised a complaint about this.

I can't believe their attitude, has anyone else had a similar experience? How did you deal with it?

Banks need to be more responsible when a customer reports fraud. Hopefully raising awareness of how Starling behaved will encourage other people in a similar situation to push for their rights.

flaneurs_lobster

Not sure what outcome you are expecting here? Are you expecting Starling to reimburse your daughter for the amount she lost to the criminals? Has she lost money beyond the initial car park charge? 

Have they stated that they will not reimburse?

Does it really matter if you or Starling refer to it as fraud, theft, misuse or something else.

Starling have done exactly as one would expect them to if someone reports misuse or loss of a debit card (or it's details) - they've cancelled and reissued.

400ixl

Starling sound like they have done the same as any back would do. What else were you expecting?

The only future risk to your daughter would be them using the card details for unauthorised transactions in the future and they have stopped this by cancelling the card.

QR code stickers over the original on a parking board is a common trick and something that people need to check for. Its not a banking fraud.

Has she reported it to Action Fraud?

GeoffTF

It is a common problem. Here is a BBC article from 3 days ago:

https://www.bbc.co.uk/news/articles/c201e2p8vl4o

Emmia

Ultimately, if your daughter isn't happy with how Starling has handled this, then she can move to another bank. 

DullGreyGuy

dave_ctf said:

I hope this post is allowed and is in a suitable category.

I've just been amazed at how poorly Starling Bank have treated a fraud report. My daughter was tricked into making a payment from a QR code in a car park for a subscription that is nothing to do with the parking payment (don't scan these codes, it's well known that they get replaced by criminals).

She reported this and Starling are claiming it isn't fraud because she entered her card details into the fake website that the QR code directed her to. Hmmm well as far as I can see,  being tricked into a payment for something you have no intention of buying is fraud.

I got her to call Starling back and insist they treat this as fraud. They are refusing to. They are issuing a new card (and my daughter has already blocked the current card in the banking app) but that is missing the point - they are not accepting responsibility for any other fraudulent activity that might happen on her account now that they have been notified.

My daughter has now raised a complaint about this.

I can't believe their attitude, has anyone else had a similar experience? How did you deal with it?

Banks need to be more responsible when a customer reports fraud. Hopefully raising awareness of how Starling behaved will encourage other people in a similar situation to push for their rights.

Whilst push fraud has become a banks problem that only applies to bank transfers and not debit card payments. Many more tools were opened to banks on transfers since OpenBanking hence why liability is with them. Those dont apply to card payments where many more companies are potentially involved in the transaction. 

Firstly, make sure Starling have cancelled the Continuous Payment Authority else freezing or cancelling the old card will do nothing. 

Secondly, if you arent happy with their response then she should complain and if not happy with the response to that then go to the Ombudsman. 

Let's step away from a debate on why a bank should be liable for whatever dodgy transactions their customers decide to get involved in and refocus... what is the subscription actually for? It could be repositioned away from fraud allegations and instead a chargeback for the product/service not being received?

TheBanker

For card payments, 'fraud' only applies where the payment has not been authorised by the card holder. In this case, the card holder did authorise the payment all be it they didn't realise what they were authorising. Starling are right not to treat this as fraud.

As the poster above says, it's different for Faster Payments where additional rules were introduced by the regulator requiring banks to reimburse the majority of 'scam' payments. These rules do not apply to cards.

You will be able to refer your complaint to the Ombudsman once Starling have issued their final response, however if you look at some of the Ombudsman's published decisions, they only typically uphold scams on cards where it is would have stood out as an unusual transaction (generally large amounts to merchants the customer has not paid before) where they suggest the bank should have intervened. But I don't think they're likely to uphold a complaint about a low value transaction. The Ombudsman recognises that measures have to be proportionate and it would not be proportionate to try to discuss every low value card payment in detail with the customer prior to authorising it. 

born_again

dave_ctf said:

I hope this post is allowed and is in a suitable category.

I've just been amazed at how poorly Starling Bank have treated a fraud report. My daughter was tricked into making a payment from a QR code in a car park for a subscription that is nothing to do with the parking payment (don't scan these codes, it's well known that they get replaced by criminals).

She reported this and Starling are claiming it isn't fraud because she entered her card details into the fake website that the QR code directed her to. Hmmm well as far as I can see,  being tricked into a payment for something you have no intention of buying is fraud.

I got her to call Starling back and insist they treat this as fraud. They are refusing to. They are issuing a new card (and my daughter has already blocked the current card in the banking app) but that is missing the point - they are not accepting responsibility for any other fraudulent activity that might happen on her account now that they have been notified.

My daughter has now raised a complaint about this.

I can't believe their attitude, has anyone else had a similar experience? How did you deal with it?

Banks need to be more responsible when a customer reports fraud. Hopefully raising awareness of how Starling behaved will encourage other people in a similar situation to push for their rights.

They have stopped & replaced the card. 
That stops any further fraud. As new card has new 16 digit number...

Complaint should just confirm this.🤷‍♀️If not then complaints team have not referred to fraud team 🤣

As to original transaction. Not the banks fault. They could try disputing it, but no guarantee that it would work. As it could be contested by co, stating she scanned QR code.

I would be more worried about getting a parking ticket, for non payment.🙋

drb411

I think people need to take more accountability.  It can’t just be passed over to the bank and expect money to be refunded.

Thanks for sharing the car park qr issue though incase anyone wasn’t aware.