Danny McIver, a Vietnam war veteran, has successfully recovered $70,000 that was scammed from his bank account. Bendigo Bank had initially refused to reimburse him, citing 'extreme carelessness' on his part.
In 2024, scammers impersonating Microsoft gained remote access to McIver's computer and mobile phone. They then executed four unauthorized transactions, draining most of his savings, which included a life insurance payout from his son's suicide. Three transactions totaled nearly $30,000, and a fourth BPAY payment amounted to $40,000.
Despite a fraud alert, the bank allowed the $40,000 payment to proceed and only froze McIver's account two hours after he spoke with them. The bank argued McIver was at fault for providing passcodes and allowing remote access, claiming he broke security rules and exhibited extreme carelessness by saving passwords in his browser and granting remote access.
McIver filed a complaint with the Australian Financial Complaints Authority (AFCA). AFCA rejected the bank's claims, ruling that the scammers would have had access to verification text messages regardless of McIver or his granddaughter's actions. The scammer had directed McIver's granddaughter to delete the messages, a process that would have exposed the passcodes.
An IT expert, Jeremy Thomas, provided crucial testimony, explaining that scammers used a hidden second screen on McIver's computer to search for saved banking logins and passwords without the victim's knowledge. AFCA also noted that the remote access software was configured for silent installation, making it difficult to detect. Granting remote access for legitimate IT support is not inherently extreme carelessness, nor is saving an internet banking password in a browser, AFCA determined.
AFCA ruled McIver was an innocent victim of a sophisticated scam and ordered the full return of his funds. According to 2023-24 AFCA data, only 4.8 percent of scam victims achieve full recovery when mediation fails.
McIver expressed elation with the outcome, stating the incident had caused him significant distress for nearly two years. He also noted the relief for his granddaughter, who had felt partly responsible.