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Category: Law
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We are due funds from our client. the bank details on the

Customer Question

we are due funds from our client. the bank details on the invoice I sent via email have been altered and changed to a different bank account. Our client apparentl paid into the account details on the altered invoice and changed the payment details with the bank but did not check with us first. £88,000.00 has now been paid into another bank account our client is now saying it is not their fault but ours as our emails where hacked.
What is the next step we take
Submitted: 4 months ago.
Category: Law
Expert:  Jim1079 replied 4 months ago.

Hello, thank you for the question.

I would make a formal complaint to the bank and ask why no fraud controls were in place, which has led to the loss. Depending on what the bank says and how it deals with your complaint, the step after that would be to involve the Financial Ombudsman who will investigate and decide whether the bank had adequate fraud controls or not. If so, it can order the bank to remedy the situation with the lost monies.

The last resort would be to sue the bank in negligence - you can use the money claims service which has a limit of £100,000.

Let me know if you need help regarding any of the above issues. If you can accept the answer and provide a star rating, I can offer unlimited follow up Q&A's at no extra cost.

Kind regards,

Jim

Customer: replied 4 months ago.
Hi Jim I have spoken to the bank - because the payment wasn't made by us they cannot investigate. The company that made the payment need to raise the enquiry. How do I even know they have done so, they said they have spoken to their bank and the bank account the money was paid into has been withdrawn. I dont know if this is even the case.
I guess my question is - legally do the company still owe us the money and if so how do I go about getting the £88,000.00 due. I could loose my company over this.
Expert:  Jim1079 replied 4 months ago.

I see, OK well you would need to demand the £88,000 payment by way of a letter before action.

They will say that it was not their fault the account information was changed so they may not pay anything. You can argue they should have checked with you first before paying such a large sum to ensure the account details were correct.

If you were to sue them, they may well defend on the basis it was not their fault but as I say, you can allege negligence on their part for not double-checking. The Ombudsman may be able to help point the finger too so it may well be worth getting them involved. Can the bank not do a claw-back considering fraud has been involved? If so, your customer would be placed back in funds.