Not upheld: fraud marker registration on SIRA database complaint against J.P. Morgan Europe Limited trading as Chase

Decision detail

Summary

Mr K complained that Chase unfairly recorded an inconsistency marker against him on the SIRA fraud database after his account received multiple fraudulent payments in September 2022. Chase had received four separate fraud reports from external banks and contacted Mr K to explain his entitlement to the funds, but he did not respond. Mr K later explained he was manipulated via Snapchat into allowing fraudsters to use his account and was only 19 years old at the time. The ombudsman found that Chase had sufficient evidence and reasonable concerns to record the marker, as four separate fraud reports from different banks regarding a newly opened account constituted strong information of fraud. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Chase had reasonable concerns and suspicions supported by strong evidence to record the inconsistency marker. Four separate fraud reports from different external banks regarding payments into a newly opened account provided sufficient grounds for the marker. Mr K's failure to respond to Chase's contact when given a fair opportunity to explain his position heightened the bank's concerns. While age is a consideration, the irregularities were apparent enough to be recognisable to Mr K. The burden of proof for recording an inconsistency marker is lower than for criminal conviction and only requires reasonable concerns supported by available evidence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website