Upheld: Fraud reimbursement (APP scams) complaint against State Bank Of India (UK) Limited
Financial Ombudsman decision DRN-5743148 of 2026-02-06T00:00:00+00:00. Fraud reimbursement (APP scams) complaint against State Bank Of India (UK) Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5743148 |
|---|---|
| Decision date | 2026-02-06T00:00:00+00:00 |
| Firm | State Bank Of India (UK) Limited |
| Product | Current account |
| Claim type | Fraud reimbursement (APP scams) |
| Outcome | Upheld |
| Remedy | Refund of £5,168.66 to the account; payment of interest due from the date of transfers to the date of settlement; award of £150 for distress and inconvenience caused |
Summary
Ms and Mr V complained that SBI refused to refund two unauthorised online withdrawals totalling £5,168.66 made from their joint account in June and July 2020. The transactions were only discovered in November 2024 when they made a balance enquiry. SBI claimed that Mr V had requested a mobile number change on 18 June 2020, and that an OTP was sent to the new number before the funds were transferred to another bank. Ms and Mr V disputed making any such request and maintained they did not recognise the new phone number. The ombudsman upheld the complaint, finding that SBI's evidence did not conclusively prove that Mr V made the request to change the mobile number, and that given the account's dormant status, enhanced security checks should have been performed. SBI was instructed to refund the full amount plus interest and pay £150 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman applied the Payment Services Regulations 2017, which require SBI to prove that Ms and Mr V made or authorised the transactions or that they were made with their apparent authority. The ombudsman found that the email sent by SBI on 10 June 2020 did not conclusively prove that Mr V made the request to change the mobile number, particularly as SBI confirmed that the required further action (completion of form or app download) did not occur. The ombudsman noted that given the account's dormant status for years prior to the change, enhanced security checks should have been required before allowing such changes. The ombudsman was persuaded that the payments were made without Ms and Mr V's knowledge, as they maintained they did not share banking details, did not use online banking, and only discovered the fraud four years later. The ombudsman also found that SBI's handling of the complaint caused unnecessary inconvenience and delay.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| State Bank Of India (UK) Limited, all decisions | 40 | 30% |
| Fraud reimbursement (APP scams), all decisions | 20,976 | 21% |
| Current account, all decisions | 52,014 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website