Not upheld: disputed transactions (alleged fraud) and account closure complaint against Monzo Bank Ltd

Decision detail

Summary

Miss B complained that Monzo refused to refund over £3,000 in disputed gambling transactions and subsequently closed her account. She claimed her phone and card had been left at a friend's house who had a gambling problem and used her money. However, the ombudsman found that Miss B's account of events was inconsistent and that evidence indicated she had her card in possession throughout the disputed period, as shown by undisputed contactless payments to retailers. The disputed transactions required PIN verification and card security details, and incoming transfers from Miss B's external account immediately preceded the gambling payments, suggesting she was funding her own gambling account. The ombudsman concluded Miss B most likely authorised the transactions herself and that Monzo acted within its contractual rights in closing her account with proper notice.

The Ombudsman's reasoning

The ombudsman found that Miss B's account of events changed significantly between her initial report to Monzo and her later statement to the investigator. The evidence demonstrated Miss B had her card in possession throughout the disputed period, as evidenced by multiple undisputed contactless payments to retailers interspersed with the disputed gambling transactions. The disputed transactions required PIN verification and card security details, which a third party would not have had access to. Additionally, the pattern of incoming transfers from Miss B's external account immediately preceding the disputed gambling payments suggested Miss B was funding her own gambling account. The ombudsman concluded it was more likely than not that Miss B authorised the transactions herself. Regarding account closure, Monzo acted within its contractual rights by providing 62 days' notice as permitted by the terms and conditions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website