Not upheld: scam - investment fraud, failure to intervene complaint against Monzo Bank Limited

Decision detail

Summary

Mr P lost over £23,000 to a cryptocurrency investment scam between March and April 2024 after being contacted via a hacked social media account of an online influencer he followed. He transferred funds to a cryptocurrency exchange which were then sent to the scammer's wallet address. Monzo Bank Limited refused to reimburse the lost funds, and Mr P complained to the FOS. The ombudsman found that while Monzo should have questioned the first unusually high payment to a cryptocurrency exchange, they were not persuaded that a warning would have prevented Mr P from proceeding, given that he trusted the social media account, had been provided with documentation and a contract, and his own research had not revealed the scam. The complaint was not upheld.

The Ombudsman's reasoning

Although Monzo should have intervened during the first payment as it was significantly high and out of character for Mr P, the ombudsman was not persuaded that a tailored cryptocurrency investment scam warning would have prevented Mr P from proceeding. This was because the social media account was one he already trusted, he believed it was how the influencer funded their travels, he had been supplied with documentation and a contract, and his own research had not yielded negative results. The ombudsman concluded that Mr P would likely have considered the investment trustworthy despite a warning. Additionally, there was no evidence that Mr P's behaviour changed or that the scammer's influence was waning as the scam progressed, so further interventions would not have prevented losses.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website