Upheld: Fraud reimbursement (APP scams) complaint against Tide Platform Limited

Decision detail

Summary

Mr S complained that Tide Platform Limited refused to refund £1,840.95 in unauthorized transactions after fraudsters stole his phone and accessed his Tide app. Tide claimed Mr S was grossly negligent for handing over his phone despite having recorded PINs and passwords on it, and alleged inconsistencies in his testimony. The ombudsman found no inconsistencies in Mr S's account, and applying the FCA's definition of gross negligence as requiring a very significant degree of carelessness beyond what a reasonable person would do, concluded that Mr S did not act with gross negligence. The ombudsman upheld the complaint and directed Tide to refund the disputed amount plus 8% interest.

The Ombudsman's reasoning

The ombudsman found no inconsistencies in Mr S's testimony regarding whether his phone and Tide application were unlocked, or regarding which PINs and passwords were recorded. Applying the FCA's definition of gross negligence as requiring 'a very significant degree of carelessness' beyond what a reasonable person would be expected to do, the ombudsman concluded that Mr S reasonably expected the fraudsters to enter their social media details and return his phone. Although Mr S was aware he had recorded PINs and passwords on his unlocked phone, this knowledge alone does not demonstrate a lack of care significantly beyond what would be expected of a reasonable person in those circumstances. Therefore, the ombudsman could not safely conclude Mr S acted with gross negligence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website