The Finance Factor

Hundreds of thousands of customers banking with Abbey have failed to have money transferred into their accounts due to a technical error.

The problem occurred in the early hours of Wednesday morning, which led to many bank accounts facing delays in receiving money transferred such as salaries and benefits.

Abbey, has apologised for the error and has assured customers that they will have charges lifted that were applied as a result of a late transfer.

It said direct debits and standing orders would still leave customers’ abbey bank accounts with no charges levied.

“We are urgently processing these payments and some payments have already credited to accounts this morning. The remainder are being processed now,” an Abbey spokesman said. Continue reading ‘Abbey customers face late payments due to technical fault’ »

Offshore banking has always been seen as the province of the rich and famous with accounts in tax havens such as Jersey, Switzerland and the Bahamas.

Certainly the image of the well-heeled or criminal classes flying off in private jets to stow their treasures in banks in glamorous locations, with the keys to their exclusive safety deposit boxes, does nothing to dispel this image.

However, technically, offshore banking simply refers to anyone with a bank account outside his or her country of origin, typically in a low-tax area. In recent years increased property prices have led to individuals with normal jobs and salaries left with large profits from the sale of property to deposit, and therefore such accounts have become more commonly owned.

The advantages of offshore banking are that it may provide those living in an unstable political climate to invest their money safely overseas. It can also offer offshore companies, trusts or foundations specific tax advantages.

However, the disadvantages can be that in the event of a financial banking crisis, offshore accounts can be less financially secure, leading to depositors having to wait a long time for compensation. Offshore jurisdictions are also frequently remote and costly to get to; though today this is less important, due to immediate online and telephone banking facilities. Continue reading ‘Offshore banking’ »

A fraudulent exporter can obtain your money by using fake shipping documents.

A common L/C scam: a fraudulent seller sends fake shipping documents to the opening or advising bank to prove that the goods were shipped. In fact, the goods never left the sellers warehouse or, more likely, never existed at all. Other documents like the invoice, packing list, export declaration, even Certificate of Origin can be easily produced by the scammer. In many L/Cs the only documents needed for the L/C to be paid are the invoice and shipping documents. If the seller’s bank believes that the papers are authentic and pays the scammer, the buyer will never see the goods and will spend much time in discussions with his bank.

How to protect yourself?

Always ask the seller to fax you the drafts of all the papers which are supposed to be sent to the bank. Check them carefully. Most of the shipping lines have online tracking system, where by entering the container number you can see when the cargo actually left the port and to which destination. If all looks acceptable, ask the seller to issue the originals and send copies to you by fax or e-mail. By B/L number you can always trace any shipment. Continue reading ‘Letter of Credit Fraud: Fake Documents’ »

The term Mobile Banking sounds like it means being able to bank while on the go – and in a sense that’s just what it does mean. You see the way we handle our money has changed dramatically in the last 50 years. It used to be that we kept our money in our wallets and took it with us everywhere we went so we could buy our groceries, clothes, sundries, etc. In the last couple decades we started carrying plastic with us everywhere we went and less cash. But now we’re changing again and that’s where mobile banking comes in.

In today’s world, it’s not so much that we carry our money around with us as we expect our money to follow us around everywhere we go. It’s not enough to write a check at the grocery store, we also want to know our balance before we spend. It’s not enough to merely whip out a credit card or debit card at the dry cleaners, we want to choose which bank account we use to pay with. And we don’t want to pay bills just at our kitchen tables anymore; we want to pay them when we’re riding the train into work each day too.

To accomplish all of this bank’s have had to turn to mobile telecommunication devices. Most financial institutions have been furiously writing software that makes their financial services available on these devices so they can compete with each other. The result has been that you can do your banking with just about any national bank or Savings and Loan and make purchases, receive account alerts, make deposits, transfer money, and even complete very complex investment transactions all on your cell phone. Continue reading ‘What is Mobile Banking?’ »

Criminals are scoring top marks for their devious ways. Automated teller machine (ATM) fraud involving close personal contact tends to be opportunistic and ranges from serious violent crime to carefully orchestrated plans to defraud victims without their knowledge. Know the facts so that you can avoid becoming another unwitting victim.

Jammed Card Readers

Tampering with an ATM card reader so your card gets stuck in the slot is one of the simplest and most passive methods of ATM fraud used. Unfortunately, you will only become aware of it once you have finished transacting and realise that your card cannot be retrieved. By this stage it is quite likely that the fraudsters will have seen your personal identification number (PIN) while you were entering it, either over your shoulder or with a hidden camera or even binoculars. As soon as you leave the ATM and go look for assistance, the fraudsters will move in, remove the card and withdraw money from your account.

How to protect yourself: There have been reports of criminals installing tiny cameras above ATM machines to allow them to see clients’ PIN codes. Always be cautious when entering your PIN at the ATM or point-of-sale. Make sure that no-one is watching and try to shield the keypad with your body or your hand so no-one can see it. Continue reading ‘How to Prevent ATM Fraud’ »