Upheld: unauthorised transactions / fraud refusal complaint against Prepay Technologies Ltd (trading as Monese)

Decision detail

Summary

Mr N's phone was stolen whilst he was out overseas in May 2025, resulting in four international payments totalling £1,358.95 being made from his Monese account without his authorisation. Monese refused to refund Mr N, believing he had made the transactions himself. The ombudsman upheld Mr N's complaint, finding that the evidence clearly demonstrated the phone was stolen and that fraudsters accessed his banking apps without his consent. The ombudsman rejected Monese's arguments regarding delayed reporting and lack of local police notification, and instructed Monese to refund the disputed amount plus fees and interest.

The Ombudsman's reasoning

The ombudsman applied the Payment Services Regulations 2017, which require refunds for unauthorised transactions unless the customer acted with gross negligence or intent. The ombudsman found sufficient evidence that Mr N did not authorise the transactions based on: the phone being stolen in a high-crime area where criminals target victims; the well-known risk of fraudsters accessing banking apps on stolen phones; Mr N's phone not being in his possession; other banks blocking similar fraud attempts; Mr N's consistent testimony; and the absence of evidence of gross negligence. The ombudsman rejected Monese's arguments that Mr N delayed reporting (48 hours is not unreasonable) and that he should have reported the theft to local police (not a requirement). The ombudsman noted that while the exact fraud mechanism cannot be pinpointed, the PSRs do not require this level of detail.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website