Not upheld: scam protection / failure to prevent fraud complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss R complained that HSBC failed to protect her from a foreign exchange investment scam, claiming she lost £35,000 in payments made to a cryptocurrency exchange account over two days in August 2021. HSBC did not uphold the complaint, stating it had processed payments Miss R authorised. The ombudsman found that while Miss R made the payments, she could not provide evidence that the funds were subsequently transferred to third parties or that she had actually lost money to a scam. The ombudsman noted discrepancies in Miss R's account, including evidence of earlier transactions and continued payments after the alleged scam, and concluded that without proof of actual loss, HSBC could not be held liable.

The Ombudsman's reasoning

The ombudsman found that while Miss R authorised the payments to the cryptocurrency account, she failed to provide evidence that money was actually lost to a scam. Specifically, she could not demonstrate that funds transferred from her HSBC account to the cryptocurrency exchange were subsequently transferred to third parties, nor could she provide evidence of investments made or money lost. The ombudsman noted discrepancies in Miss R's account, including evidence she had purchased a 'first package' six weeks before claiming the scam began, and that she continued making substantial payments after claiming to be scammed. Without evidence of actual loss to a scam, the ombudsman could not hold HSBC liable for processing authorised payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website