When CAFCA’s treasurer James Ayers got a phone call from Inland Revenue to say a $15,596 direct debit had been dishonoured, he was perplexed. After all, CAFCA is a non-profit organisation and doesn’t pay tax. Yet, when James checked, he found that a total of $19,700 had already been taken out of the account in several unauthorised payments. He spent more than nine months recovering the money and investigating what had happened. CAFCA issued a press release last month to warn others about what James found: a fundamental verification weaknesses in the banking industry.
Here’s a follow up from Stuff, containing further and information and comment from several official parties, including the Government: https://www.stuff.co.nz/nz-news/360979532/every-crook-will-try-it-loophole-used-syphon-thousands-bank-account.