Not upheld: scam and fraud - refund of unauthorised payments complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr K complained that HSBC refused to refund card payments he made after being contacted by someone he believed was a friend requesting money for gambling. HSBC refunded the first three payments but refused to refund seven subsequent card payments of £258.57 each, totalling £1,810.99. The ombudsman found the complaint not upheld because Mr K failed to provide sufficient evidence that the payments resulted from a scam, including conflicting accounts of events, deleted messages, and inability to explain key transaction details. Without establishing a scam occurred, the ombudsman determined it would be unfair to require HSBC to refund the disputed payments.

The Ombudsman's reasoning

The ombudsman could not safely conclude that the payments were made as a result of a scam due to insufficient evidence. Mr K provided conflicting accounts, was evasive in his responses, failed to provide copies of messages requesting the money, and could not clearly explain key details such as why the payments went to accounts seemingly unconnected to his friend or how he discovered the deception. The deletion of messages, while potentially justified, left the service without clear evidence of the circumstances. Without establishing a scam occurred, the ombudsman could not require HSBC to refund the payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website