Consumer complaint received 2024-02-02
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: SANTANDER HOLDINGS USA, INC. (NY)

XXXX XXXX, I fell victim to two multi-layered scam operations run by XXXX which involved me making deposits for a total amount of XXXX USD from my Santander Bank account to fraudulent investment firm ( s ). 
When determining whats reasonable and fair, we should focus on the issue of liability ; common queries include, but are not limited to, the following ( i ) whether Santander Bank did not take notice of any rule, law, or regulation, and/or possibly missed any material elements of the relevant bylaws or codes of conduct, that may have prevented them from protecting my financial safety ; ( ii ) whether by virtue of Santander Banks custodianship over my funds or by its control over them, they owed a fiduciary duty to the me and if so, whether that duty was breached ; ( iii ) whether Santander Bank promoted the transaction ( s ) in question despite being aware of the nature of the transaction ( s ) in question ( iv ) whether Santander Bank was in compliance with its own policies and procedures ; ( v ) whether Santander Bank owed duties to myself, what the scope of those duties was, and whether Santander Bank did not uphold those duties ; ( vi ) whether Santander Banks conduct was unfair ; and ( vii ) whether Santander Bank has within its power the ability to, and should, compensate me for the harm that has befallen me. 
Upon identification of such unusual or suspicious activity, it is crucial that the relevant staff member adequately describe the factors making an activity or transaction suspicious, thoroughly depict the extent and nature of this activity, and properly communicate to the customer that such activity meets the relevant criteria of fraud. 
In providing its services to a customer, a financial institution is required by law to exercise the care and skill of a diligent, prudent banker. In this case, this means that the payment service provider should not turn a blind eye to known facts pointing to a real possibility that their customer is being scammed. In other words, Santander Bank must have had special knowledge of what was occurring or been alerted to a real possibility of fraud taking place. The financial institution must have known or reasonably ought to have known that I was dealing with a scammer. 
Granted, there is room for diversity of view insofar as reasonableness is concerned. Indeed, there is a sense in which the standard of care of the reasonable person involves in its application a subjective element. 
However, it must be remembered that the correct test is always reasonable care in all circumstances, not average care. The fact that most people behave in a certain way may be good evidence that the conduct is reasonable, but this is not necessarily the case. Although reasonableness is a very fluid concept, all of the evidence suggests that Santander Bank did not foresee the fraud and disregarded even the most obvious dangers in this respect. 
Situations do tend to repeat themselves and it is advisable to examine previous outcomes to see how the standard of the reasonable person should be applied, and that lessons can be learned from the errors of the past. 
Apropos of the fluidity of the concept of reasonableness, all Santander Bankhas done in this regard is set up a dichotomy of having or not having the legal obligation under consideration, however, that does not go one-inch toward explaining why various regulatory authorities, has maintained that financial institutions can, and should, protect consumers using their systems, advanced technologies, and rich experience. 
Santander Bank is obliged to take some action if it is sufficiently aware of a real possibility that a fraud may be being perpetuated. If you don't question its customers instructions or raise the possibility of a scam with the customer in these circumstances, it may be liable if the red flags indicate the customer is : particularly vulnerable, or if the possibility of fraud was serious or real, not just suspected. 
There are some recommendations to organizations for protecting customers from financial harm that might occur as a result of fraud or financial abuse ; and gives guidance on how to recognize customers who might be at risk, how to assess the potential risks to the individual and how to take the necessary actions to prevent or minimize financial harm.