Was the victim of a phishing scam liable for his losses? Which case won?
Man provides credit card number and PIN codes to online scammers
The case of a man who fell victim to a phishing scam reads as a textbook example of cyber fraud. The man received an email inviting him to participate in an online cash survey. The email contained a web link and instructions to click on the link to complete the survey.
As part of the survey, the man was asked to provide his credit card number, which he did. Unbeknownst to him, by doing so, he made this information available remotely to the scammers who had sent him the email.
The fraudsters then asked the man to enter one-off PIN codes sent by his financial services provider to his mobile phone, which he did.
Transactions made using credit card details
This enabled the scammers to make transactions using the man’s credit card. These transactions totalled over $5,000 and were with merchants outside Australia.
When the man’s financial services provider denied liability for the losses, he lodged a dispute with the Financial Ombudsman Service, which had to determine whether he was liable.