Australian bank manipulated childrens’ bank accounts

Australia’s Commonwealth Bank has admitted its staff made unauthorised transactions to children’s bank accounts, in a scam aimed at earning extra commissions.

In a statement, it said some employees had been caught making small deposits, typically of around 10 cents, to ‘Youthsaver’ accounts.

Commonwealth Bank CEO Matt Comyn said, “while this practice did not financially harm any of our customers, it was a breach of their trust. For that, I’m deeply sorry. ”

“The practice was identified following a review in February 2013 that confirmed small deposits had been made to some Youthsaver accounts.

“These deposits were designed to make the accounts appear active and improve these individual employees’ incentive compensation.

“The employee incentive associated with these actions was, on average, less than $2 in total per year.

Picture: Bank manipulated bank accounts
Matt Comyn, CEO, Commonwealth Bank

“When customers open an account, they put their trust in us and that’s particularly true when the account holder is a child.

“After we identified this practice by some staff in 2013, we immediately made changes to end it, and we are not aware of any evidence that the practice has occurred again in the past five years.

“There is now a line in the sand and we have zero-tolerance for behaviour such as this, irrespective of whether there is customer harm.”

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