Rising rent is causing trouble for many New Zealanders, the Salvation Army send a warning. Fishermen receive fines for poor conduct as Dunedin Hospital takes another hit.
ANZ staff helped a scam victim send $250,000 to a known “money mule” account.
ANZ was previously alerted to the mule’s fraudulent account but did not issue an industry-wide warning.
Whanganui CEO Jayson Herewini faces money laundering charges linked to $1.53 million in stolen funds.
Staff at the country’s largest bank helped a scam victim send $250,000 to the account of a known “money mule” just weeks after another victim lost $250,000 to an ANZ account under the same name.
A Herald investigation has revealed that ANZ was on notice that one ofits accounts, under the name CADT Holdings, had been used to steal a defence force officer’s life saving after ANZ was alerted to the fraud on June 15, 2023.
Despite this, five weeks later on July 21, an ANZ call centre worker helped another victim, Kate*, send $250,000 to a BNZ account under the name CADT Holdings.
It also confirmed that after learning it was harbouring a suspected scam account, it did not issue any industry-wide alert to put other banks on notice, because doing so could be illegal.
After initially finding it was not liable, ANZ has now offered to review its handling of Kate’s transaction.
Whanganui CEO charged with money laundering
Kate believed she was investing in Infratil bonds and a Westpac term deposit. But the investment was a sham and the money - along with another $100,000 sent online to the account four days later, and $200,000 sent to a TSB account under a different name the following month - was never recovered.
Kate is one of eight scam victims who sent money to accounts allegedly controlled by Whanganui chief executive Jayson Herewini, who is now facing money laundering charges in connection with $1.53 million in stolen cash.
Herewini told the Herald he was tricked by a fake British lawyer into sending the money overseas. He claimed he earned “less than $30,000″ in commission but believed it was a legitimate business venture and claims he was also scammed.
Jayson Herewini is alleged to have used accounts at ASB and TSB to wash large amounts of stolen money. He goes to trial later this year. Photo / Mike Tweed
During an interview last month, Kate revealed she’d sent money to a CADT Holdings account.
Last year, the Herald wrote about an Auckland military officer who was one of three victims tricked into sending money to an ANZ mule account under the same name in April and May 2023.
The officer made his $250,000 payment in person at the Takapuna ASB branch. He realised he’d been scammed a month later and alerted authorities and the banks.
Staff at ASB's Takapuna branch helped the victim send his $250,000 to scammers. Photo / Google
The Herald recognised the account name and confirmed that ANZ was alerted to the fraud five weeks before processing Kate’s $250,000 transfer to BNZ.
We asked ANZ why it sent the money when it was on notice the account name matched that used to steal the three earlier victims’ life savings.
We also asked the Australian-owned bank whether it had security systems in place to match names of known scam accounts to protect customers, and why the bank didn’t send any industry warning after learning of the suspected mule activity.
ANZ defends actions, open to reviewing case
In a detailed statement, ANZ said it was “standard industry practice” to use account numbers, rather than names, to identify and block suspicious transactions and accounts.
“This has been shown to be the most effective and efficient method as account numbers can be specifically identified - unlike account names which can be used by any number of accounts.”
After being alerted to the initial fraud by ASB, ANZ immediately blocked the mule account and began investigating.
But banks had “strict duties” about when customer information could be shared under the Privacy Act and anti-money laundering legislation, the spokesman said.
“We can’t always share information about a mule account where cases are still under investigation by us or by the police.”
ANZ says it closed the 'mule' account immediately after being alerted to the fraud and launched an investigation. Photo / Doug Sherring
Account holders could be scam victims themselves, and sharing information prematurely could pose a defamation risk.
Banks had established an anti-scam centre to safely share details about suspicious transactions and accounts.
The system was “evolving” but came with privacy and legal challenges, the spokesman said.
A detailed review of Kate’s case last year found ANZ was acting on the customer’s instructions and did not contribute to her loss.
However, the bank said Kate could escalate her complaint and ANZ was happy to review her case if she wished.
Banking Ombudsman warning caught in ANZ’s junk mail
The fraud came just four months after the Banking Ombudsman warned NZ banks about the rise in fake investment scams, recommending they provide additional customer warnings and update staff training.
ANZ told the Herald there was “no information in the email that was not already known to ANZ”.
The email was blocked because it contained a hyperlink to a known fraudulent website.
ANZ had sought assurance from the Banking Ombudsman Scheme that it would avoid including fraudulent websites links in future communications “to avoid a recurrence”.
*Victim’s name changed to protect identity.
Lane Nichols is Deputy Head of News and a senior journalist for the New Zealand Herald with more than 20 years’ experience in the industry.
