Upheld: Card / payment disputes complaint against eToro Money UK Ltd
Financial Ombudsman decision DRN-5688558 of 2026-02-12T00:00:00+00:00. Card / payment disputes complaint against eToro Money UK Ltd. Outcome: Upheld.
Decision detail
| Reference | DRN-5688558 |
|---|---|
| Decision date | 2026-02-12T00:00:00+00:00 |
| Firm | eToro Money UK Ltd |
| Product | Other regulated product |
| Claim type | Card / payment disputes |
| Outcome | Upheld |
| Remedy | eToro Money UK Ltd must: (1) Reimburse £4,599 for the two unauthorised transactions to payee B; (2) Pay 8% simple interest on this amount from the date of withdrawal until the date of decision; (3) Pay £300 compensation for distress and inconvenience caused. |
Summary
Mr R's mobile phone was stolen on 29 August 2024, and the thief used it to access his eToro trading account, selling shares and cryptocurrency. The proceeds were transferred to his e-money account with eToro Money, from which £4,599 was withdrawn to an unknown individual 'B' between 4:01am and 4:06am. Mr R reported the theft to eToro Money around 11:50am and later discovered the unauthorised transactions. eToro Money refused to reimburse him, claiming correct procedures had been followed. The ombudsman upheld the complaint, finding the transactions were unauthorised and not caused by Mr R's gross negligence, as he had implemented reasonable security measures and reported the incident promptly. eToro Money was directed to reimburse £4,599 plus 8% interest and pay £300 compensation.
The Ombudsman's reasoning
The Payment Services Regulations require reimbursement for unauthorised transactions unless the customer authorised them or the unauthorised access resulted from the customer's intent or gross negligence. The ombudsman found Mr R did not authorise the transactions, the phone was taken from his possession, and he had implemented reasonable security measures (biometrics, PIN, 2FA). The ombudsman interpreted 'gross negligence' as requiring a very significant degree of carelessness, which was not demonstrated. Therefore, eToro Money was obligated to reimburse Mr R but failed to do so, treating him unfairly.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| eToro Money UK Ltd, all decisions | 11 | 32% |
| Card / payment disputes, all decisions | 14,085 | 18% |
| Other regulated product, all decisions | 51,105 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website