ATM – Alleged Unauthorised withdrawal


The Complainant alleged that money was withdrawn from his account at Bank C’s ATM without his knowledge.

The Complainant contended that the ATM card was in his possession and he did not record the PIN for reference. He has viewed the Closed Circuit Television (CCTV) footage and he does not know the person who had used his card at the ATM to perform the unauthorised withdrawals from his account.


Investigation and Findings

The following evidence was revealed during the mediation session held to hear the dispute between the Complainant and Bank C:

  1. The Complainant was required to key in his PIN on the bank’s keypad at the customer service area when he opened his account. The disputed ATM withdrawal took place on the same day, around 5pm.
  2. The CCTV footage furnished by Bank C revealed that the Complainant’s colleague was standing beside him and had observed him keying the PIN. It is highly likely the Complainant’s PIN was compromised during this time.
  3. The CCTV recordings at the time of the account opening at the bank revealed that the bank’s staff at the customer service counter had handed the Complainant’s ATM card to the Complainant’s colleague whilst the Complainant was at the ATM at the material time. OFS highlighted to Bank C that the bank owed a duty of care to its customer to ensure that the ATM card which is as good as cash should be handed only to the rightful owner, i.e. the cardholder.
  4. The Complainant’s colleague was seen handing a card to the Complainant when he returned to the counter. However, it is difficult establish whether the ATM card given to the Complainant belonged to him. On this, Bank C was unable to confirm based on the CCTV recordings as to whether the Complainant was given the genuine card bearing his card number and not any other card. OFS highlighted to Bank C that the Complainant’s colleague could have switched the card thereby deceiving him into believing that the ATM card was in his possession during the occurrence of the disputed withdrawals.


OFS's View

Based on the CCTV recordings, OFS held that Bank C had facilitated the fraud by the third party. Thus, Bank C’s contention that the transaction was successfully executed with a valid chip based ATM card and PIN does not apply.


Settlement : Based on the findings and the circumstances that led to the loss of money from the Complainant’s account, OFS requested Bank C to review the findings and work towards an amicable settlement with the Complainant. The Complainant also accepted Bank C’s settlement offer.