A dispute over R1.5 million will see FoneWorx battle it out with Absa in court, the company says.
FoneWorx CEO Mark Smith says the company discovered in February that just over R3 million of its money had been fraudulently moved on 21 February into unauthorised accounts.
It has since recouped R1.56 million of the stolen funds, and now wants the rest paid back to it. Smith says the company has since changed banks.
FoneWorx had being using an Absa Cash Focus Banking facility for third-party payments, which can only be accessed by authorised people within the company.
However, in February, unauthorised people, unknown to FoneWorx, accessed Cash Focus and made unauthorised transfers from FoneWorx's eight registered accounts to the value of R3 million into 183 unknown Absa accounts.
The money was then moved out of these accounts through retail banks and ATMs.
“Despite an incomplete forensic audit on the part of Absa, Absa has denied any liability. Absa, however, has been unwilling to supply critical information to FoneWorx, including IP addresses and other salient facts used in the transfer process,” the company says.
It conducted its own investigation, including contracting an independent polygraph forensic investigator and placed its own staff on polygraph examinations. All relevant staff members were cleared and no deception was indicated.
To court
While the company has reported the matter to the South African Police Service, it will also take steps to recover the remaining R1.5 million.
Smith says this amount was transferred into the company's attorney's trust account, but then again removed by Absa. The bank claimed the money had been wrongfully transferred and was actually a duplicate payment.
Absa has approached the court to have the money returned to it, and FoneWorx is defending this action, and will file its plea soon. The company is also asking the court to ensure the bank pays it back the difference between the amount that was recovered and the amount that was stolen.
In the meantime, says Smith, the attorney is holding the disputed amount in trust until the matter has been resolved.
On the rise
Steven Ambrose, MD of World Wide Worx Strategy, says fraudulent transactions such as this are on the rise, and technology makes it easier and faster to perpetrate fraud.
“I'm sure we are going to see more and more of this happening; that's why it's important that banks play open cards,” he adds.
Absa was unable to respond by the time of publication, but indicated it would comment during the course of today.
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