HSBC "Safeguard"

MagicBoy · 25 Jul 2017 at 11:15

I got a lovely letter in the post today, purporting to be from HSBC. In order to help them "protect my account from fraudulent transactions" they're demanding I fill out a questionnaire that's asking for information that's frankly none of their business, and to provide documents to prove my identity. If I don't provide them within 30 days then they reserve the right to limit services.

The options for this are to send them off blindly in a Freepost envelope to a PO Box that doesn't look like any HSBC address I've seen in the years I've been banking with them, or to use a online scanning and verification service I've never heard of.

They've had all the ID they require when the account was opened.

My first thoughts are it's either :
1) A clever phishing scam
2) Dumb yet sinister for reasons unknown

I'll be taking it to the local branch at lunchtime to get it checked out.

Anyone else had a similar letter?

MagicBoy · 25 Jul 2017 at 11:30

So it's a knock on from them getting caught money laundering...

Walking distance to the local branch, so I'll be heading over at lunchtime. It's odd that they only offer post or online checking, and not the local branch .. which is one of the things that set alarm bells off.

Dressing up ID checks and personal data mining as "protect(ing) my account from fraudulent transactions" is downright sinister. It fails the "Personal data shall be obtained only for one or more specified and lawful purposes, and shall not be further processed in any manner incompatible with that purpose or those purposes." bit of the Data Protection Act.

It's similar to a passport form where they request the documents witnessed/signed by a someone in a trustworthy profession. To add insult to injury I work in one of those professions, a cursory scan of my account would tell them that!

Time to consider a new bank I think.

MagicBoy · 25 Jul 2017 at 12:50

Branch confirmed it's legit, to their credit offered to send the documents on my behalf. The look on her face was "Oh no, not this again! I hope he doesn't shout at me" when she saw the letter.

Paid a visit to another financial institution on the way back to the office. Appointment booked to get everything moved.

MagicBoy · 25 Jul 2017 at 14:53

neil_g said:
Bit melodramatic no? Just ignore it, they don't say in their faqs that they'll take away existing services.

I won't deny I'm annoyed. It's a deceitful, badly handled sledgehammer approach where they're asking some customers for information they have no legal right to.

As for the FAQ : "if we don't receive your up-to-date information we may not be able to provide you with all of our services".

MagicBoy · 25 Jul 2017 at 14:59

To add - The bank has chosen the terms under which it is willing to do business. I choose either to agree to those terms or take my business elsewhere. I'm choosing the latter.

MagicBoy · 25 Jul 2017 at 18:27

Just showed the letter to my Dad. Reaction : "Is it a spoof?"

He took a little persuading that it wasn't. At least he's clued up for when First Direct send him one.

MagicBoy · 25 Jul 2017 at 18:29

ahar said:
My wife got one of those. Annoyingly we'd just got a mortgage with them so we had given them all the info already the previous month. Was a pain to sort, especially after they lost the info and stopped her card for not responding!

There you go @neil_g ...

MagicBoy · 22 Nov 2017 at 13:24

HSBC are now chasing me again. I closed all accounts with them apart from the current account, which was switched to another bank. So some inapparent reason they've not closed the current account as should automatically happen.

I'm not going to waste my time on it further. They'll realise their mistake at some point.

MagicBoy · 22 Nov 2017 at 19:06

dowie said:
what information were they asking for?

Letter has been shredded now as it's no longer an issue. From memory they wanted multiple forms of ID for person and proof of address. Preferably passport, photocard driving license, Council tax or utility bill. Or ironically a bank statement from anyone other than HSBC! All of which had to be certified.

I had issues with an elderly relative's bank accounts last year (not HSBC) relating to income from investments and US money laundering regulations, so this smacks of something similar. Typical UK customer with a current account, cash saving and credit card etc with a PAYE salary going in are nothing to do with those regs. I wasn't happy with my passport number being likely to end up in some US government database thanks to HSBC.

It's certainly nothing to do with "better protect(ing) all our customers from fraud and financial crime". They had all the ID they required when I opened the account back in the early 90s.

MagicBoy · 22 Nov 2017 at 19:21

As far as HSBC are concerned I moved once, when I left the family home. A one minute scan of my bank statement has the mortgage payments, utility bills and 1001 other things on there to prove I live and work at the address they have (and quoted me on a mortgage for).

Anyway it's a redundant point having switched to another bank. They trusted that as an existing customer I was who I said I was and I earned an incentive for myself and a friend in the process. They don't bank outside the UK and have some ethics so I'm happy. Thanks to HSBC I got some cash that went towards a new graphics card!