Not upheld: Authorised Push Payment (APP) scam - investment fraud - reimbursement claim under CRM Code complaint against Barclays Bank UK PLC

Decision detail

Summary

Miss E lost £20,000 to an investment scam after discovering the opportunity through social media in December 2023. She made ten payments of £2,000 each to fraudsters promising 8-30% monthly returns, and received approximately £5,000 in false returns before discovering the scam. Barclays intervened during the payment process but allowed Miss E to proceed after she assured them she had researched the investment. The ombudsman found Miss E made payments without reasonable basis for believing the investment was legitimate, citing the implausible returns, lack of formal documentation, informal introduction, and her awareness of negative reviews. Although Miss E reported health problems, the ombudsman found insufficient evidence of vulnerability under the CRM Code. The complaint was not upheld as Barclays did not breach its obligations under the CRM Code or otherwise.

The Ombudsman's reasoning

The ombudsman found that Miss E made payments without a reasonable basis for believing the investment was legitimate. The promised returns of 8-30% monthly were unrealistic and implausible. Miss E was aware of negative reviews but proceeded anyway. The informal introduction through social media with no formal documentation should have prompted greater caution. While Miss E received some returns, these came after her final payment and would not have influenced her initial decision-making. Although Miss E reported health problems, there was insufficient evidence that her capacity was impaired to the extent that she could not protect herself. Barclays' intervention and warnings would not have materially prevented the scam given Miss E's determination and confidence in the investment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website