Not upheld: Fraud reimbursement (APP scams) complaint against PaySend PLC

Decision detail

Summary

Miss M fell victim to a job scam where she believed she was working for a legitimate research analyst firm and was instructed to make payments for app reviews that would be refunded. She made two payments totalling £500 via PaySend before realising the scam. PaySend blocked the recipient accounts when notified but could not reverse the transactions as the funds had already been removed. The ombudsman found that the payment amounts and timing did not present fraud indicators that should have prompted PaySend to intervene, and that Miss M had authorised the payments. Therefore, the complaint was not upheld.

The Ombudsman's reasoning

Under the Payment Service Regulations 2017, the starting point is that Miss M is liable for payments she authorised. While PaySend should have systems to detect fraud indicators, the two payments of £200 and £300 made approximately one month apart did not present characteristics that should have raised concerns about pressure or financial harm. The ombudsman found no basis to say PaySend should have intervened. When Miss M reported the scam, PaySend took appropriate action by blocking accounts, though the funds had already been removed by that point.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website