Not upheld: unauthorized transactions / fraud claim complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr M complained that Barclays failed to refund disputed online payments totalling £2,418.88 made after his wallet and debit card were lost or stolen on 22 September 2025. Barclays investigated and concluded the payments were authorized by Mr M. The ombudsman examined evidence including IP address logs, account login timing, and OTP authentication requirements, and concluded on the balance of probabilities that Mr M was aware of and participated in the payments. The complaint was not upheld, and the ombudsman found Barclays' £50 compensation for administrative delays to be fair and reasonable.

The Ombudsman's reasoning

The ombudsman applied the Payment Services Regulations 2017, which establish that consumers are responsible for authorized payments and businesses for unauthorized payments. The key evidence was that the disputed payments originated from an IP address extremely close to Mr M's home address that he regularly used to access his account, and that the payments required OTP authentication sent to his phone which he confirmed remained in his possession. The ombudsman concluded on the balance of probabilities that someone at a location Mr M regularly frequented and with access to his phone made the payments, meaning Mr M must have been aware of and participated in them.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website