Tony Hetherington is Financial Mail on Sunday’s ace investigator, fighting readers corners, revealing the truth that lies behind closed doors and winning victories for those who have been left out-of-pocket. Find out how to contact him below.
J.M. writes: I returned from a trip abroad to find post that had been redirected from my old address to my new one. Among the letters was a debit card from TSB Bank, together with other letters from the bank, providing a PIN number and information.
I immediately called the bank, and after 45 minutes was able to speak to the fraud team who advised I had been the subject of identity fraud.
I asked if the account could be closed as it was not opened by me, and could the bank say if there was an outstanding balance. Both requests were refused.
Tony Hetherington replies: Whoever applied for the account knew enough about you to supply accurate personal details to TSB. They probably also knew that you had moved house, and they may well have had access to your old home, which would have allowed them to pick up post, including the bank card.
Alternatively, they might have told TSB that they were moving from your old address to a different address. They only slipped up because you had paid to have your mail automatically redirected, so whoever posed as you never received it. TSB told you that the account was opened on November 10. You pointed out that according to TSB’s website, new customers have to provide a passport or driving licence as proof of identity.
Card trick: TSB admitted to making errors during the fraudulent application process
And on November 10, you were actually in Australia, along with both your passport and your driving licence.
When you complained, TSB offered no answers or explanations. This was important to you, as you work in financial services and need a clean credit agency record to stay in your job. There was a threat that someone who impersonated you once and almost succeeded could do the same thing again, and this time they might get away with it.
You asked the bank to tell you what contact details the impersonator provided. Was there a new address which was not yours? Was there an email address or phone number which were not yours? TSB refused to give answers on the grounds that this would be against data protection rules and breach the fraudster’s right to privacy.
So what checks and searches did TSB actually carry out before opening the new account? The bank’s website says: ‘Open a new account in 15 minutes. To get started, you’ll need your personal details and contact information, a valid passport or full driving licence – not provisional – to confirm your age and identity, and a UK residency permit if you need proof that you’re a UK resident.’
This sounds very simple, which it is, but in fact it is actually even more simple. A test run of TSB’s online application system did not ask for copies of either a passport or a driving licence. Apparently these are only requested after the applicant has already been welcomed as a new online customer.
TSB told me: ‘We follow industry standard processes to verify the identity of customers when they open a new account with us.’ After some reluctance, the bank explained that this means TSB checked with credit agencies and the electoral register, and their records confirmed that you exist. They did not, of course, confirm that the application really was from you.
When I pressed, TSB admitted: ‘Following this stage, we should have carried out an additional secondary check, requesting electronic ID. This did not take place on this occasion, which is not to TSB’s usual high standards.’ However, it does at least show that the fraudster did not have any real or fake identity documents in your name.
The bogus account has been closed, and TSB has alerted the finance industry’s anti-fraud organisation Cifas, to avoid any recurrence. The account application had been added to your credit agency records, but the bank says it has deleted this. TSB told me it is sorry for the obvious distress and inconvenience that was caused.
It is sending you £100 by way of an apology, and you have told me you will be donating this to charity.
If you believe you are the victim of financial wrongdoing, write to Tony Hetherington at Financial Mail, 9 Derry Street, London W8 5HY or email [email protected]. Because of the high volume of enquiries, personal replies cannot be given. Please send only copies of original documents, which we regret cannot be returned.
