Unauthorised and mistaken transactions

Signs of unauthorised and mistaken transactions

An unauthorised transaction is when someone transfers money from your account without your permission.

A mistaken transaction is when you pay the wrong person or company by using the wrong bank details.

These transactions can occur in a lot of different ways, including EFTPOS and credit card transactions, online payments, internet and mobile banking, and BPAY. Unauthorised transactions may also include ATM withdrawals.

When you check your accounts, look for payments or withdrawals you don't recognise, such as:

• a payment to a person or company you don't know
• a cash withdrawal from a place you've never been
• a transaction on a date when you didn't use your account
• a payment made twice
  
  

When you check transactions, keep in mind:

• Transactions can take days to show up in your account. If you buy something on a weekend, the transaction might appear the next week.
• The name of the shop or restaurant might not match the name on your bank statement. Check the business and trading names online.

If you think something is wrong, contact your bank as soon as possible.

How to get your money back

If you find something wrong, contact your bank as soon as possible.

The sooner you contact your bank, the more likely you are to get your money back — and if the transaction is unauthorised, the sooner the bank can stop any further transactions.

When you report a mistaken or unauthorised transaction, get a reference number from the bank. This will help if you to need to contact them again.

Mistaken transactions

You're more likely to get your money back if:

check_circle you report the mistaken transaction to your bank as soon as possible, and

check_circle aif the unintended recipient has enough money in their account to cover the mistaken internet payment

Under the ePayments Code, different rules apply if you make the report within 10 business days, after 10 business days, or after seven months. 

Unauthorised transactions

You're more likely to get your money back if:

check_circle a forged, expired, blocked or cancelled card was used

check_circle a bank employee or a seller made the transaction fraudulently

check_circle the transaction took place before you received your card, PIN or password

check_circle a seller incorrectly debited your account more than once

check_circle the transaction took place after you told your bank that your card was lost or stolen

check_circle the transaction took place after you told your bank that someone else may know your PIN or password/p>

check_circle it's clear that you haven't contributed to the loss

You're less likely to get your money back if you:

check_box_outline_blank acted fraudulently

check_box_outline_blank didn't keep your PIN or password secret

check_box_outline_blank unreasonably delayed telling your bank that your card was lost or stolen

check_box_outline_blank unreasonably delayed telling your bank that someone else may know your PIN or password

check_box_outline_blank accidentally left your card in an ATM

Learn what to look for when choosing a transaction account that's right for you.

How to protect yourself

You can use online banking or your bank app to check transactions daily. Or at a minimum, checking your bank statements regularly makes it easier to spot a mistake. 

Check that regular payments like your wages are going in when they should be. Check what payments have gone out of your account. Look for any transaction purchases where money has been transferred out without your knowledge.

Make sure any direct debits you've set up have gone through. Mistaken transactions can happen if you put in incorrect details. You could be charged a fee for making a mistake like this.

Some ATMs charge you every time you take out cash so watch out for these as they can quickly add up.

Make sure you also look out for monthly account keeping fees your bank charges you, if any. Try setting up a regular reminder to check your bank statement, so every pay day or the beginning or the end of the month.

Staying on top of how much money is coming in and how much is going out helps you feel more secure and makes it easier to save.

Where to turn for help

If you feel that your financial institution is not doing enough to help you, or is not willing to refund unauthorised transactions that you feel should be refunded or help you to retrieve mistaken payments, you can seek help.

Your first step is to make a formal complaint to your financial institution via their internal dispute resolution process. If you’re unhappy with that process, you can take your complaint to the Australian Financial Complaints Authority (AFCA). Among other things, AFCA considers complaints about banking deposits and payments.

AFCA’s dispute resolution service is free and independent. You should complain to AFCA as soon as possible after your financial institution has finished considering your complaint, as time limits apply.

If you need help with the process, you may be able to get free legal advice from a community legal centre (CLC). Check their website to see what type of services they offer and whether they have other web resources (such as factsheets) that may be helpful.

If you’re struggling with your finances because of the unauthorised payment or mistaken transaction, you can talk to a financial counsellor.