Not upheld: scam/fraud - failure to intervene and prevent loss complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr S complained that Barclays failed to reimburse him for a scam loss in 2019. The ombudsman found that Barclays should have recognised the heightened fraud risk and intervened with the payment to a new recipient that was out of character. However, the ombudsman concluded that a proportionate intervention would not have prevented the loss because Mr S had verified the legitimacy of the transaction, had friends who had successfully transacted with the same individual, and would likely have proceeded even if warned. Barclays had already refunded 50% of the loss and paid £150 compensation for service failures, which the ombudsman deemed fair. The complaint was not upheld.

The Ombudsman's reasoning

Although Barclays ought to have intervened with the payment, a proportionate intervention would likely not have prevented the loss. Mr S had taken substantial steps to verify the legitimacy of the transaction, had confidence in the individual based on personal relationships and research, and would likely have proceeded even if questioned and warned appropriately. The ombudsman was not satisfied that intervention would have prevented the loss, which is required to uphold the complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website