Westpac Bank has made a $1000 “full and final” 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 refused to reimburse him for his significant losses.

It was only after intervention from the Herald last year that Westpac backtracked and agreed to refund the retired wool grader in full in what it described as a one-off “goodwill payment”.

Following that payment, Johnson sought a public apology and compensation for the stress and anxiety he had endured, turning to the Banking Ombudsman’s Scheme for help.

“They said, ‘What are you after’? 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.

“I had to sign a disclaimer saying that was full and final, and that it would be over and done with.”

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 “for the stress and inconvenience that this has caused you”.

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

“If it hadn’t been for you writing about it I’d still be pushing s*** up hill because the bank didn’t want anything to do with it. They just said, ‘You’ve been scammed, get your phone cleaned.

“They said, ‘Someone must have got hold of your account’. I said, ‘How could they get hold of my account?’ They said, ‘Your PIN number’. I said, ‘There’s only two people who know my PIN number - me and my mum. And she died in 2018.”

Johnson discovered the money had been siphoned from his savings 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 “stop” 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’d bequeathed to his grandnieces.

Westpac wrote to Johnson in September saying there was no evidence the bank’s 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’s online banking systems had been compromised.

Since going public with his case, Johnson said he’d been recognised on the street, and was even approached at a bowls tournament by a fellow competitor who said: “You beat the f***en bank.”

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.

“I went into the bank the other day and above the counter there was a sign saying, ‘Watch out for scams’, so they’ve obviously taken that on board.”

A spokeswoman for the Banking Ombudsman’s office said: “Our early resolution service provided the customer with advice and support as he sorted out his problem directly with the bank.

“We are pleased his concerns have been resolved. It is standard practice for any resolution to be documented in a full and final settlement agreement.”

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