Not upheld: investment scam - refund request; failure to prevent fraud complaint against Santander UK Plc

Decision detail

Summary

Mr M lost approximately £25,000 to an investment scam perpetrated by firm X after being recruited via social media in 2022. He made six payments from his Santander account, with Santander intervening on one £5,000 payment but ultimately approving it after Mr M explained it was to a new account he had opened. Mr M subsequently switched his bank accounts to circumvent further interventions and continued funding the scam, even discussing selling his property and fabricating loan documentation. The ombudsman found that while Santander could have asked better questions, the scammer's influence over Mr M was so strong that no reasonable intervention would have prevented the fraud, and the complaint was not upheld.

The Ombudsman's reasoning

While Santander could have asked better questions during their intervention on the £5,000 payment, the ombudsman found that even proportionate intervention would not have prevented the scam due to the strong influence and guidance X had over Mr M. The evidence showed Mr M was willing to go to extreme lengths to continue funding the scam, including switching banks, discussing selling his house, and fabricating loan documentation. The scam was not reported until 2025, three years after the payments, making recovery impossible as funds had passed through accounts in Mr M's control to the scammer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website