Partially upheld: authorised push payment (APP) scam - inadequate warnings and failure to meet CRM Code standards complaint against Lloyds Bank PLC
Financial Ombudsman decision DRN-5939798 of 2026-05-12T00:00:00+00:00. authorised push payment (APP) scam - inadequate warnings and failure to meet CRM Code standards complaint against Lloyds Bank PLC. Outcome: Partially upheld.
Decision detail
| Reference | DRN-5939798 |
|---|---|
| Decision date | 2026-05-12T00:00:00+00:00 |
| Firm | Lloyds Bank PLC |
| Product | Current account |
| Claim type | authorised push payment (APP) scam - inadequate warnings and failure to meet CRM Code standards |
| Outcome | Partially upheld |
| Remedy | Lloyds Bank PLC must pay 50% of Mr P's outstanding loss and 8% simple interest per year from the date the claim was declined to the date of reimbursement. No additional compensation awarded for inconvenience. |
Summary
Mr P lost approximately £29,000 to a cryptocurrency investment scam after being contacted by someone claiming to represent 'Company F'. He made five payments between July and August 2021 after seeing positive online reviews and being persuaded to upgrade his trading account. When he attempted to withdraw funds months later, he discovered the scam. Lloyds declined reimbursement claiming the payments were not unusual. The ombudsman partially upheld the complaint, finding that while Mr P bore some responsibility for lacking a reasonable basis of belief, Lloyds breached its CRM Code obligations by failing to provide effective, scam-specific warnings despite their systems recognising the transactions as higher risk. Lloyds was ordered to reimburse 50% of the loss plus interest.
The Ombudsman's reasoning
The ombudsman found that while Mr P bore some responsibility for not having a reasonable basis of belief (as negative reviews were available online), Lloyds failed to meet its CRM Code obligations. The warnings Lloyds provided were not 'effective' because they were not scam-specific enough, did not explain hallmarks of investment scams, and directed customers outside the payment journey to external websites. The ombudsman determined that the first payment on 20 July 2021 carried sufficient scam risk (new payee, significant amount) to warrant an effective online warning. Lloyds' own system behaviour (providing warnings for payments over £5,000) demonstrated they recognised the scam risk. Therefore, liability should be shared 50/50.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Lloyds Bank PLC, all decisions | 19,797 | 16% |
| Current account, all decisions | 45,590 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website