Not upheld: Fraud reimbursement (APP scams) complaint against ICICI Bank UK Plc

Decision detail

Summary

Miss A invested £60,000 in loan notes in Company A via ICICI Bank in May 2018. The company was subsequently dissolved in October 2023 and Miss A received no returns on her investment. She complained to ICICI in November 2023, claiming the bank should have intervened to protect her and refund the money. The ombudsman found the complaint not upheld because the payment was properly authorised by Miss A, was not unusual given her account history of regular large payments (up to £460,000), and ICICI was not acting as an investment advisor. The ombudsman noted that while banks must monitor for fraud, this transaction did not trigger such concerns.

The Ombudsman's reasoning

While banks must monitor accounts for fraud and unusual transactions, the ombudsman found that the £60,000 payment was not unusual given Miss A's established account history of regular large payments (ranging from £4,500 to £460,000). The payment was properly authorised by Miss A with a signed instruction. ICICI was not acting as an investment advisor and could not have reasonably foreseen that Company A would be dissolved or that the investment would fail. The CRM Code, which provides for scam refunds, did not apply as it came into effect in May 2019, after this payment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website