Dear Claudienne,

Good day, I am having a serious problem with Scotiabank Jamaica (BNS) for which I am seeking your kind assistance in addressing.

My sister had a bank account in her name only at the BNS Oasis Branch in Spanish Town. My sister died suddenly on May 9, 2017.

In 2018 her executor requested information on the status of the account, She was however informed that the account had no money in it and was therefore summarily closed by the bank.

The executor then requested a printout of the bank records of my sister’s account. To our shock and dismay the records revealed that at the date of my sister’s death there was a balance of $2,448,699.88 in the account.

The records revealed that this was a savings account into which she only deposited. No withdrawals were ever made from it up to the point of her death.

The shock was that on the 30th of May 2017, 21 days after her death, online purchases started to be made from Amazon.com from her account!!!

Multiple purchases were made on a daily basis, For the period 30th May 2017 to July 31st 2017, 150 purchases were made from amazon.com in the amount of $1,363,653.98.

This activity continued and for the period July, 2017 to October 2017 an additional 144 purchases were made to the amount of $1,118,050.80

Purchases from Amazon continued until January 2018 when the funds were almost depleted; therein BNS apparently stepped in and summarily closed the account.

When the executor and I inquired of the bank’s management how that situation could occur, we were informed, offhandedly, that my sister had a debit/credit card and the person presently in possession of the card could have used it.

This was impossible, as I was given the card (all her cards/purse) by my sister when I took her to the hospital. I did not even take out this card.

The bank official also indicated that the bank should have been informed of her death, that they were not in a position to “police” accounts, and there was not much they could do.

I am so appalled at BNS’ response as I am wondering, what are the fiduciary obligations of banks to their clients? Do we not deposit monies in banks for safe keeping? A letter received from the bank manager reflected similar sentiments.

The letter from the bank manager, dated April 11, 2019, stated the following:

“Further to our previous correspondence, our corporate security team have investigated the matter but unfortunately have been unable to identify the person who utilised the deceased’s card on amazon.com. It is recommended that you report the matter to the police, given the nature of the fraud you have identified, and seek their intervention to obtain any information from amazon.com to further facilitate the investigation. Based on the matters you have reported it would appear that the person committing the fraud may have been known to the deceased and was in a position to utilise the card without authority.

Please note that as the bank was only first notified of the deceased’s passing in [June 2018], over a year after her death, we are not in a position to offer any compensation for the fraudulent transactions. Further, whilst the bank endeavours to keep our customers’ accounts secure, we are unable to monitor all forms of activity and make the determinations you have highlighted. Ultimately, it remains the duty of the cardholder to maintain the security of their card and to monitor the usage and transactions which occur on their accounts. Clearly this was not possible in the current circumstances and it is with regret that no one advised the bank earlier of the customer’s death so that appropriate controls could have been placed on the account to avoid such fraudulent activity from occurring.

We hope that you understand our position. Notwithstanding, we remain willing to assist the police in any further investigations as may be carried out in support of your effort to bring those responsible for perpetrating the fraud to account.”

What I find mysterious is that up to six transactions were made on a daily basis but only on workdays Mondays to Fridays….never on a Saturday or a Sunday or on any Jamaican public holidays.

I am seeking your kind assistance in addressing this matter, as it is unfair that my sister denied herself and saved her money in an institution she trusted and for this to happen. I am sure the bank is able to track these purchases through dialogue with Amazon, but it seems they are unwilling to investigate the matter.

I am the beneficiary of my sister’s estate.

IC

Dear IC

Tell Claudienne has been communicating with Scotiabank in regard to your concerns and note that the bank has contacted you and the executor of your sister’s estate.

In an e-mail to Tell Claudienne on Thursday, September 26, 2019 Scotiabank stated:

“This matter had been previously reported to us and investigated thoroughly. We sent a letter dated April 11, 2019 to the executor of the estate, outlining the outcome of our investigations. In that letter it was stated that the executor needed to refer the matter to the police for criminal investigation. We further advised that the police would need to make an official request to the merchant to provide the details of the recipient of the unauthorised transactions. Scotiabank would not be privy to that information.

Since receiving this enquiry, the bank has again indicated its willingness to assist the police in any further investigations as may be required to determine this matter.

Scotiabank protects customers against online fraud with our security guarantee which states that the full amount will be reimbursed once fraud has been committed through no fault of the customer. Scotiabank also wishes to remind executors and family members to advise the bank of the death of account holders as soon as possible,;this will help to ensure that no unauthorised activity takes place on the account.”

Tell Claudienne notes that the Scotiabank security guarantee that can be found online reads as follows:

“We will fully reimburse you in the unlikely event that you suffer direct financial losses due to unauthorised activity

(1) in your accounts through Scotia Online Financial Services

(2)provided you have met your security responsibilities.”

You have told Tell Claudienne that the executor reported the fraud to the police Fraud Squad on September 13, 2019.

Please let us know how the investigations progress.

We wish you all the best.