Not upheld: fraud handling, unauthorised overdraft, access to funds during fraud investigation complaint against Barclays Bank UK PLC
Financial Ombudsman decision DRN-5870814 of 2026-05-06T00:00:00+00:00. fraud handling, unauthorised overdraft, access to funds during fraud investigation complaint against Barclays Bank UK PLC. Outcome: Not upheld.
Decision detail
| Reference | DRN-5870814 |
|---|---|
| Decision date | 2026-05-06T00:00:00+00:00 |
| Firm | Barclays Bank UK PLC |
| Product | Current account |
| Claim type | fraud handling, unauthorised overdraft, access to funds during fraud investigation |
| Outcome | Not upheld |
| Remedy | No remedy ordered. The ombudsman determined Barclays had already refunded all disputed amounts and took no further action was required. |
Summary
Miss B complained about Barclays' handling of fraud on her account following a phishing scam on 17 May 2025. A fraudster obtained access to her account, took out a £20,000 loan in her name, and made unauthorised card payments totalling £6,223.27. Barclays refunded all disputed payments and closed the fraudulent loan, but Miss B incurred an overdraft after transferring funds (including part of the refund originating from the fraudulent loan) to another bank. Miss B also claimed she was missing £14,000 to £40,500. The ombudsman found no significant failings by Barclays, determining that it had properly refunded all fraudulent payments, reasonably explained that Miss B must return funds originating from the fraudulent loan, and provided adequate alternative access to her genuine funds during the investigation period.
The Ombudsman's reasoning
The ombudsman found that Barclays had refunded all disputed fraudulent payments totalling £6,223.27 in accordance with the Payment Services Regulations 2017. The fraudster's card payments were unauthorised and Barclays was liable for them. Regarding the overdraft, the ombudsman determined that Miss B was not entitled to retain funds originating from the fraudulent loan and that Barclays had clearly explained this during calls and in letters. The ombudsman found Barclays' fraud detection timing was reasonable and that it provided Miss B with alternative ways to access her genuine funds (branch withdrawals and savings account access). The ombudsman rejected Miss B's claims about missing £14,000 or £40,500, finding these figures either unsupported or reflective of normal account movements rather than additional fraud. Any additional fraudulent payments not included in the original claim would need to be raised separately with Barclays.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Barclays Bank UK PLC, all decisions | 11,140 | 21% |
| Current account, all decisions | 45,590 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website