Not upheld: investment scam - refund claim and failure to prevent fraud complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr P claimed to have lost approximately £110,000 to an investment scam operated by Company C between August 2020 and July 2022, using his Barclays account to purchase cryptocurrency. He requested a refund from Barclays in June 2025, which was declined due to insufficient evidence. The ombudsman found Company C was likely a scam and Mr P probably invested with them, but could not uphold the complaint because Mr P failed to provide sufficient evidence linking the disputed payments to Company C or demonstrating the actual loss amount. Key issues included inconsistent payment patterns, incoming credits from multiple third parties, and lack of detailed testimony explaining the transactions.

The Ombudsman's reasoning

While the ombudsman was satisfied Company C was likely a scam and Mr P likely invested with them, the complaint could not be upheld due to insufficient evidence. Mr P failed to provide detailed testimony explaining the disputed payments, demonstrating how payments linked to Company C investment, or confirming return values. Bank statements showed inconsistent payment patterns, multiple payments to same payees on same day for varying amounts, and incoming credits from third parties funding the investments, raising doubts about whether Mr P was investing his own money. The burden of demonstrating loss rests with Mr P, and despite multiple opportunities, he provided insufficient evidence to calculate a fair loss amount for Barclays to reimburse.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website