Under what circumstances can a UK high street bank reverse, refund or cancel a bank transfer and do they need to contact the account holder beforehand?
I had been under the impression that if I log onto my online bank account and see that I’ve been paid some money, then that money is mine.
However, I’ve recently become aware of a scam whereby an honest vendor will offer something for sale (maybe a camera, a laptop or similar) a scammer will offer to buy it, and will transfer money over, the vendor will see the money in his account, dispatch the item believing he’s been paid, and then the scammer will somehow ‘reverse’ or ‘cancel’ the transaction.
How does this work? Does the scammer simply call his bank and says he’s made a mistake? Or does he call the bank and say he never made the transaction and it must be fraud?
If I'm the seller, how would I protect myself from this? Are there some forms of electronic transfer that are more secure than others? Does it make any difference how long the money is in my account before I post the goods? Maybe if I wait 4 days and the money is still there it must be legitimate?