An Australian family is suing two major banks for $1.25 million, claiming "gross negligence" after their disabled son lost about $250,000 in an investment scam, The New Zealand Herald reported. The family alleges that both ANZ and Westpac failed to prevent the fraud and protect their son, Rajneel Prasad, a vulnerable client due to injuries sustained in a past accident.
Rajneel, 48, from New South Wales, was contacted by a scammer posing as a Rabobank adviser in early 2022. Convinced to invest his savings in what he believed were high-interest bonds, he wired A$245,000 to a New Zealand Westpac account in April. Weeks later, his family realized he had fallen victim to a scam and notified ANZ and Australian police.
Despite ANZ’s attempts to recall the money, no funds were recovered. The money had been quickly transferred from the New Zealand account to other accounts. While New Zealand and Australian police were supposed to investigate, a miscommunication left the case unassigned and inactive.
Rajneel’s family lodged a complaint with the Australian Financial Complaints Authority (AFCA), which ruled that ANZ had failed to protect Rajneel, given his vulnerable status. ANZ had already flagged two earlier fraudulent attempts but allowed the final transaction to proceed without adequate checks. The AFCA ordered the bank to fully compensate the family for their loss.
Rajneel’s parents, who act as his caregivers, continue to seek justice. They claim that Westpac harboured the New Zealand mule account used to launder the stolen funds and accuse both banks of professional incompetence.
Suresh Prasad, Rajneel’s father, said Westpac refused to provide key information about the recipient account, citing privacy laws. He argued that the bank was using privacy rules to protect the scammers, hindering efforts to recover the money.
ANZ and Westpac have both defended their actions. ANZ highlighted the difficulty of recovering funds once transferred, as scammers often quickly move money to cryptocurrency. Westpac expressed sympathy for the victim but denied negligence, stating that there was no previous fraudulent activity on the account in question.
As a result of the ordeal, the family is now preparing civil proceedings, seeking $755,000 from Westpac and $500,000 from ANZ. They cite Rajneel’s ongoing psychological trauma, including anxiety, pain, and repeated suicidal ideation, as a consequence of the scam.
Adding to their frustration, it has emerged that neither New Zealand nor Australian police are currently investigating the crime, according to Herald. Both forces mistakenly believed the other was handling the case, leaving the file shelved. Suresh Prasad expressed his dismay, fearing that the scammers have escaped justice and could continue defrauding other victims. He criticized the inaction of authorities and questioned how many more people might be affected while the criminals remain at large.
ANZ declined to comment on the case but emphasised the evolving nature of scams and its efforts to improve fraud prevention. Westpac also refused to confirm details of the account involved, citing privacy obligations, and reiterated its compliance with legal and regulatory requirements.
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