Partially upheld: Fraud reimbursement (APP scams) complaint against HSBC UK Bank PLC

Decision detail

Summary

Mr and Mrs H were victims of a safe account/impersonation scam where a fraudster posing as HSBC security convinced Mrs H to transfer £97,964.58 across 31 payments between June and September 2024. HSBC reimbursed only £619 and declined the remainder, claiming Mrs H received sufficient warnings and could have verified the caller's legitimacy. The ombudsman found that while Mrs H had some red flags she should have noticed (promised money never returned, inconsistencies between callers, and a prior warning), HSBC's warning about safe account scams was not effective under CRM Code standards because it lacked detail about how scammers build trust and appear legitimate. The ombudsman ordered HSBC to reimburse 50% of the outstanding loss plus interest, finding both parties shared liability.

The Ombudsman's reasoning

The ombudsman found that while Mrs H did not have a reasonable basis for belief (due to red flags including the warning she received, promised money never materialised, and inconsistencies between callers), HSBC failed to provide an effective warning under the CRM Code. The telephone warning about safe account scams lacked sufficient detail about how scammers gain trust and appear legitimate, which was critical given Mrs H already believed she was speaking to genuine HSBC staff. Therefore, both parties failed to meet CRM Code standards and liability should be shared equally at 50/50.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website