The branches of three Blue Mountains Commonweath banks have been named in a school banking scam that saw staff fraudulently set up accounts to earn bonuses.
Thousands of children’s Commonweath Bank accounts were fraudulently manipulated by retail branch staff nationally as part of a widespread scam to earn bonuses and meet aggresive performance targets.
A Sydney Morning Herald investigation involved a parent filling in a form to enrol in school banking . The form was sent to the bank but the parent did not make the deposit to activate the account. The teller used their own money or the bank’s loose change to acitvate the account without consent. The parent was not informed of the account being activated and the teller was given a bonus for the activated account.
The report said in Katoomba 31 youth saver accounts were opened which amounted to 20.1 per cent of all Youth Saver accounts.
In Blaxland, 42 accounts were opened with less than $1 which amounted to 24 per cent of all Youth Saver accounts.
And in Springwood 17 accounts were opened, accounting for 12.7 per cent of all Youth Saver Accounts.
Commonwealth Bank issued a statement to say while the practice did not financially harm any of our customers, it was a breach of their trust.
Courtesy: Sydney Morning Herald.
