Upheld: Fraud reimbursement (APP scams) complaint against TIDE PLATFORM LTD

Decision detail

Summary

B, a limited company represented by director Mr C, fell victim to a sophisticated APP scam in summer 2024 where scammers impersonated Tide, spoofed regulatory body numbers, and persuaded Mr C to transfer over £54,000 to fraudulent accounts. Tide offered 50% refund from the second payment onwards, but the Ombudsman upheld the complaint and directed full refund of £16,305.09 from the second payment onwards plus 8% interest. The Ombudsman found Tide should have intervened at the second payment, which was notably large and unusual compared to the account's normal activity, and that Mr C should not be held jointly liable given the scam's sophistication, his vulnerable medical state, and the pressure created by the scammers.

The Ombudsman's reasoning

Under Payment Services Regulations, B was initially liable as Mr C authorised the payments. However, Tide had a duty to monitor accounts for fraud risks and intervene where appropriate. While the first payment was not unusual enough to trigger intervention, the second payment was notably large, rapid, to a new payee, and at an unusual account type - standing out as remarkable compared to B's normal activity. Had Tide intervened with reasonable questions, they would likely have uncovered the scam. Mr C should not be held jointly liable for negligence given the sophistication of the scam, the spoofed regulatory body verification, his vulnerable medical state, and the pressure and panic created by the scammers. Tide's warnings about receiving calls were insufficient to alert customers to this specific scam type.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website