Not upheld: unfair fraud marker loading complaint against Revolut Ltd

Decision detail

Summary

Mr W complained that Revolut unfairly loaded an adverse fraud marker against him on the Cifas database after receiving a third-party fraud report regarding funds paid into his account. Revolut investigated and closed his account, loading the marker. Mr W initially claimed he did not recognise the transaction but later stated the sender was a friend transferring funds on behalf of another friend. The ombudsman found Mr W's testimony inconsistent and unconvincing, noting he provided no supporting evidence, his account differed from the sender's version, and the transaction pattern (immediate transfer through multiple accounts to a remittance service) was indicative of money laundering. The ombudsman concluded Revolut met the Cifas standards for loading the marker and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman applied Cifas standards requiring reasonable grounds to believe fraud was committed and clear, relevant, rigorous evidence that the customer was likely a witting participant. The ombudsman found the third-party fraud allegation credible, meeting the first standard. Regarding the second standard, the ombudsman found Mr W's testimony inconsistent and unconvincing. The ombudsman noted Mr W provided no supporting evidence for his claims, his account differed from the sender's, and the transaction pattern (multiple transfers through various accounts to a remittance service) was indicative of money laundering rather than a legitimate fund transfer between friends. The ombudsman concluded the evidence likely pointed to Mr W receiving the funds for illegitimate purposes.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website