Not upheld: unauthorised transactions / fraud claim complaint against Monzo Bank Limited

Decision detail

Summary

Mr and Mrs S complained that Monzo refused to refund £650 in disputed transactions made on their joint account on 14 March 2025 via Apple Pay. They claimed they did not authorise the transactions or set up the Apple Pay token. Monzo declined the complaint, arguing the payments were made using an Apple Pay token legitimately set up on Mrs S's genuine device. The ombudsman found that the token was set up on 21 September 2024 requiring Mrs S's active participation including OTP confirmation, the same device was used for an authorised transaction one hour before the disputed payments, and there was no credible explanation for how a third party could have executed multiple transactions without Mrs S's knowledge. The complaint was not upheld as the ombudsman concluded the transactions were more likely than not to have been authorised.

The Ombudsman's reasoning

The ombudsman applied the Payment Services Regulations 2017 presumption that customers are liable for authorised payments and the firm is liable for unauthorised payments. The key issue was whether the disputed transactions were authorised. The ombudsman found that the Apple Pay token was legitimately set up on Mrs S's genuine registered device requiring her active participation, the same device was used for an authorised transaction one hour before the disputed payments, and there was no reasonable explanation for how a third party could have made multiple separate transactions without Mrs S's knowledge or consent (requiring them to take her phone, unlock it, and execute each transaction). Without evidence of a compromise or third-party involvement, the ombudsman concluded on balance of probabilities that the transactions were authorised.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website