Sent Money to the Wrong Account? Here’s What You Need to Know

Imagine spending years saving up for retirement, only to watch most of it vanish with one small mistake. That’s exactly what happened to Mt Roskill pensioner Andrew Che Sit Bong, who accidentally sent his retirement savings—$158,000—to the wrong bank account when transferring funds from the UK to New Zealand.

By the time he realised the error, only $28,000 could be recovered. The rest? Already spent by the person who received it.

Unfortunately, if you send money to the wrong person, getting it back isn’t always easy—or guaranteed.

According to Banking Ombudsman Nicola Sladden, if you accidentally send money to the wrong account, the bank can help—but only with the other person’s permission.

“The recipient’s bank usually contacts them and asks if they agree to reverse the transaction. If they say yes, great. But if they say no? You’re on your own.”

In that case, your only real option is to take legal action or try to get in touch with the person directly.

 Real-Life Examples

In one case reviewed by the ombudsman, a woman sent $35,000 across three payments—intending to send it to her son. Instead, it went to a completely different person she’d paid in the past.

She asked for it back. The recipient refused.

She then asked the bank to cover the loss, arguing they should’ve matched the account name and number. But the bank’s terms clearly stated it wasn’t liable for customer errors like this—and the complaint wasn’t upheld.

 Lessons & Tips

1. Double-check before you send.
Always confirm account numbers before transferring large amounts—especially if it’s a new payee.

2. Account name matching is coming… but not everywhere yet.
Some banks have started using “confirmation of payee” systems (which check that account names match numbers), but it’s not universal across New Zealand yet.

3. If you receive money that’s not yours—don’t keep it.
It might feel like winning the lottery, but legally and ethically, you’re expected to return it. If your bank asks you to reverse a mistaken payment, say yes.

4. If it happens to you:

• Contact your bank immediately.
• Report it to the Banking Ombudsman.
• Consider legal advice or contact the police if necessary.

 From Consumer NZ

Sahar Lone from Consumer NZ reminds people that these cases can get messy, and there’s no guarantee of success.

“It’s best to act quickly and get support from the Ombudsman or legal channels. Sadly, it’s not always easy to get your money back.”

Bottom line: One wrong digit can cost you everything. Always take a second look before hitting send. And if you ever receive money by mistake—returning it is the right thing to do.