Ebay/Gumtree fraud where funds paid to a UK bank account

If you're in the UK I'll post the steps you should take if you are certain that what has happened to you is a fraud and not an honest error, mistake or misunderstanding. Always try to contact the seller first to resolve any dispute.

If it is clear that what has occurred is a fraud rather than any of these events, then proceed as follows. There's no guarantee it will have any effect, but the alternative is to write off the payment and forget about it.

Unfortunately some fraudsters are misusing their bank accounts to facilitate online fraud and, unless action is taken and banks are more vigilant, the situation will continue and get worse.

1. Take copies of all e-mails, correspondence and save copies of the web page/advert involved

2. make some Google searches and see if the bank account has been reported as being involved in previous alleged frauds. Take copies and note web locations of the reports.

3. Submit an online report to Action Fraud and note the report number and take a copy. Include details of any evidence of involvement in previous frauds.

http://www.actionfraud.police.uk/report-a-fraud/why-contact-action-fraud

4. Report the fraud to the bank concerned and submit a formal letter of complaint asking the bank to confirm that the account details you used correspond with the account details in their records. (It's unlikely they'll answer this question, but press the issue and make them give a 'yes' or 'no' answer) - the point being that if they don't match then they should not have accepted the payment and, if the name doesn't correspond with the account holder's real name, they may have contravened money laundering legislation.

Send the mail by recorded delivery and head it 'COMPLAINT'.

Tell them you expect the bank to have complied money laundering legislation and follow the correct procedures in handling the fraud as detailed by CIFAS and the Payments Council.

Add that you will submit a complain to the Financial Ombudsman Service if they fail to respond as requested.

You require the payment to be returned to you.

Mention to the bank that if they have not dealt with your complain to your satisfaction within eight weeks or, they indicate before then that they will not assist you, you will make a complaint to the Financial Ombudsman Service. It will not cost you anything but it does cost the bank.

5. Make a complaint to the Financial Ombudsman Service.

(Work in progress).

6. Contact media e.g. Moneybox http://www.bbc.co.uk/radio4/features/money-box/contact/

7. Contact your MP http://www.writetothem.com

8. Contact Parliamentary Commission on Banking Standards http://www.parliament.uk/business/committees/committees-a-z/joint-select/professional-standards-in-the-banking-industry/contact-us/

Some relevant and useful quotes from UK financial bodies.

http://www.cifas.org.uk/moneymulescams_feb

Peter Hurst, Chief Executive of CIFAS, the UK’s Fraud Prevention Service says ....... Misuse of an account was the second most commonly identified fraud in 2012 – with over 45,000 confirmed instances, many of which bear the hallmarks of such “money mule” activity. Money from drug dealing, investment and boiler rooms scams, fake lotteries, people trafficking and prostitution is pushed through these scams, so that ‘dirty’ money is made to appear as if it is ‘clean’. Providers are legally required to close accounts that are used to launder money and can be heavily fined by international regulators if they fail to do so.

http://www.banksafeonline.org.uk/common-scams/money-mules

Remember that even if you have nothing to do with the actual extraction of funds from another person's account, by allowing your account to be used to receive and transfer such funds, you will be acting illegally.

Ignorance is no excuse - allowing your bank account to be used for fraud can lead to up to 10 years’ imprisonment!

The Law

http://www.laundryman.u-net.com/page8_efonfin.html