Not upheld: Authorised Push Payment (APP) Scam - Reimbursement under CRM Code complaint against Barclays Bank UK PLC

Decision detail

Summary

Miss D lost £7,773 to a cryptocurrency investment scam perpetrated by 'Mr O', whom she met while shopping in March 2022. She made 17 payments between March and August 2022 but never received returns or her money back. Barclays initially refunded 50% of the loss under the CRM Code, later adding interest and £150 compensation. Miss D sought full reimbursement, but the ombudsman found she lacked a reasonable basis for believing the payments were legitimate given multiple warning signs, and that Barclays' 50% reimbursement was fair and reasonable under the CRM Code provisions.

The Ombudsman's reasoning

The ombudsman found that Miss D did not have a reasonable basis for believing the payments were for genuine goods or services or that Mr O was legitimate, given multiple warning signs: she met Mr O by chance while shopping, did not seek independent advice or research, Mr O provided no proof of investment strategy or returns, and the promised returns were too good to be true. Therefore, Barclays could fairly rely on the CRM Code exception to full reimbursement. Regarding Barclays' standards, the payments would not have appeared suspicious to warrant an Effective Warning, and the 50% reimbursement already paid was appropriate. The delay in Barclays' response (approximately 2 months) was reasonable, and the £150 compensation for customer service failings was fair, particularly as the larger delay was caused by the professional representative rather than Barclays.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website