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

Decision detail

Summary

Mrs J complained that ICICI Bank UK Plc failed to refund £870.12 that was debited from her account after she fell victim to a scam. She believed she was authorising a small payment but was deceived into approving a much larger transaction via a one-time passcode (OTP). The bank declined to refund the amount, conducted a fraud investigation, and attempted an unsuccessful chargeback. Mrs J also complained about delays and poor service. The ombudsman found that Mrs J authorised the transaction by approving the OTP, despite being deceived about the amount, making her liable under the Payment Services Regulations 2017. The ombudsman also found the bank did not act unreasonably in its handling of the fraud claim or chargeback process. The complaint was not upheld.

The Ombudsman's reasoning

Under the Payment Services Regulations 2017, Mrs J is liable for authorised payments and the bank is liable for unauthorised payments. Although Mrs J was deceived about the purpose and amount of the payment, she authorised the transaction by approving the OTP. The fact that she was the victim of a scam does not automatically entitle her to a refund. The ombudsman found that Mrs J authorised the disputed transaction despite not noticing the currency and amount in the OTP message. The bank acted appropriately in processing the transaction as authorised. Regarding customer service, the ombudsman found no evidence that ICICI Bank treated Mrs J unfairly or acted unreasonably, and the delay in raising a chargeback would not have affected the outcome given the transaction was OTP-authorised.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website