Westpac Bank has made a $1000 鈥渇ull and final鈥� settlement payment to a 71-year-old scam victim after cyber criminals gained access to his online accounts and drained $100,000.

Dunedin pensioner Ray Johnson complained to the Banking Ombudsman about his treatment by the Australian-owned banking giant, after Westpac initially聽聽for his significant losses.

It was only after intervention from the Herald last year that聽聽and agreed to refund the retired wool grader in full in what it described as a one-off 鈥済oodwill payment鈥�.

Following that payment, Johnson sought a public apology and compensation for the stress and anxiety he had endured, turning to the聽聽for help.

鈥淭hey said, 鈥榃hat are you after鈥�? They advised me that the usual payments are in the hundreds. I said if they make that $1000 I will donate it to two charities, the Stroke Foundation and Otago Community Hospice.

鈥淚 had to sign a disclaimer saying that was full and final, and that it would be over and done with.鈥�

Johnson received an email yesterday from a senior Westpac manager, advising that the money had now been deposited into his account. An earlier email apologised 鈥渇or the stress and inconvenience that this has caused you鈥�.

Johnson told the Herald he was pleased with the outcome but frustrated it had taken media attention to force the bank鈥檚 hand.

鈥淚f it hadn鈥檛 been for you writing about it I鈥檇 still be pushing s*** up hill because the bank didn鈥檛 want anything to do with it. They just said, 鈥榊ou鈥檝e been scammed, get your phone cleaned.

鈥淭hey said, 鈥楽omeone must have got hold of your account鈥�. I said, 鈥楬ow could they get hold of my account?鈥� They said, 鈥榊our PIN number鈥�. I said, 鈥楾here鈥檚 only two people who know my PIN number - me and my mum. And she died in 2018.鈥�

Johnson discovered the money had been聽聽in three unauthorised transactions over two days in June, and immediately alerted Westpac and police.

Dunedin pensioner Ray Johnson was scammed out of $100,000 when thieves accessed his online bank accounts. Photo / Otago Daily Times

Though Westpac was able to 鈥渟top鈥� the two latter transactions of $11,000 and $38,000, the first withdrawal of $48,839 could not be recovered and the bank refused liability.

Johnson believes the thieves likely hacked his Westpac internet banking app before the money was wired offshore. The lost cash represented a third of his retirement savings, which he鈥檇 bequeathed to his grandnieces.

Westpac wrote to Johnson in September saying there was no evidence the bank鈥檚 security systems had been breached and it would not reimburse him.

But after receiving questions from the Herald last year, Westpac changed tack and confirmed it would refund the money.

The bank has defended its security processes, saying there was no evidence that Westpac鈥檚 online banking systems had been compromised.

Since going public with his case, Johnson said he鈥檇 been recognised on the street, and was even approached at a bowls tournament by a fellow competitor who said: 鈥淵ou beat the f***en bank.鈥�

Johnson hoped the saga would serve as a warning to other Kiwis about the dangers of being scammed, and make banks more cautious about refusing to reimburse fraud victims.

鈥淚 went into the bank the other day and above the counter there was a sign saying, 鈥榃atch out for scams鈥�, so they鈥檝e obviously taken that on board.鈥�

A spokeswoman for the Banking Ombudsman鈥檚 office said: 鈥淥ur early resolution service provided the customer with advice and support as he sorted out his problem directly with the bank.

鈥淲e are pleased his concerns have been resolved. It is standard practice for any resolution to be documented in a full and final settlement agreement.鈥�

A Westpac spokesman said the bank had nothing further to add.