Not upheld: banking error and scam liability complaint against Revolut Ltd

Decision detail

Summary

Mr T complained that Revolut sent his funds to the wrong account (though still in his name), and after safely receiving them there, a scammer accessed and stole over £30,000. Mr T sought compensation from Revolut, arguing the error enabled the scam. The ombudsman found that while the transfer was not as expected, the loss occurred at another financial institution after the funds left Revolut's control, making it too remote from Revolut's actions to hold the firm liable. The complaint was not upheld.

The Ombudsman's reasoning

Although Revolut sent the funds to an unintended account, the loss occurred at another financial institution after the funds had safely arrived in Mr T's other account. The ombudsman found the loss was too remote from Revolut's actions to hold it liable, as Revolut could not have reasonably foreseen a scammer would gain access to that account. Once the funds left Revolut's control, responsibility transferred to the other financial institution. Mr T could have transferred the funds himself after confirming receipt.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website