Upheld: scam reimbursement and failure to intervene complaint against J.P.Morgan Europe Limited trading as Chase

Decision detail

Summary

Mr C lost £100,000 to a sophisticated investment scam in December 2024 after responding to a social media advertisement. Chase refunded £85,000 under the Faster Payment Scheme Reimbursement Rules but refused to reimburse the remaining £15,000, arguing the Rules capped all fraud reimbursement. The ombudsman upheld the complaint, finding that Chase should have intervened on the initial payment as it was unusually large and to a new payee, and that the Reimbursement Rules do not limit liability for conduct-based complaints to the FOS. Chase was ordered to refund the outstanding loss of £12,666.67 (after deducting returns received) plus 8% interest.

The Ombudsman's reasoning

Chase is responsible for losses beyond the Reimbursement Rules maximum where its conduct caused the loss. The Payment Systems Regulator explicitly states that APP scam victims can bring complaints to the FOS separately from the Reimbursement Rules. Chase should have intervened on the initial £100,000 payment as it was unusual for the account. An earlier intervention would likely have prevented all loss, as evidenced by Chase's successful intervention in January 2025. Mr C conducted reasonable due diligence given the sophistication of the scam and should not bear contributory responsibility.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website