Not upheld: unauthorized account opening and fraud marker registration complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr K complained that HSBC opened a current account in his name without his knowledge and registered a Cifas fraud marker against him. An account was opened in September 2023 with Mr K's personal information and identification documents, and fraudulent payments were received in November 2023. HSBC attempted to contact Mr K about the transactions but received no response, leading to the Cifas registration. Mr K later suggested his details may have been obtained through a fraudulent investment platform. The ombudsman found that the account opening process, including real-time selfie verification and the use of Mr K's confirmed address for card and PIN delivery, indicated Mr K's likely involvement, and that HSBC correctly registered the Cifas marker based on the available evidence.

The Ombudsman's reasoning

The ombudsman found that the account opening process required real-time verification via selfie, which would be difficult to obtain fraudulently. The use of Mr K's confirmed address for card and PIN delivery, combined with cash withdrawals requiring the card and PIN, suggested Mr K's involvement. The ombudsman noted it was implausible that a fraudster would arrange payments into an account without confidence in accessing them. Regarding the Cifas marker, HSBC had reasonable grounds based on fraud reports and Mr K's failure to respond to inquiries about the transactions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website