Not upheld: scam/fraud - refund of losses from authorised transactions complaint against THE CO-OPERATIVE BANK P.L.C

Decision detail

Summary

Mr T was victim of a sophisticated police impersonation scam in July 2025 where fraudsters convinced him to withdraw €3,000 from a Post Office and £5,000 from his bank branch, plus make ATM withdrawals, totalling approximately £8,840. The Co-operative Bank refunded the ATM withdrawals in full and 50% of the branch withdrawal but declined to refund the Post Office withdrawal. The ombudsman upheld the bank's decision, finding the transactions were authorised because Mr T made them himself using his card and PIN. While the bank should have done more to prevent the branch withdrawal, Mr T bore contributory responsibility due to multiple red flags he should have questioned, resulting in a fair 50/50 split of responsibility for that transaction.

The Ombudsman's reasoning

The ombudsman found the transactions were authorised because Mr T made them himself using his card and PIN, even though he was deceived. While the bank should have done more to prevent the £5,000 branch withdrawal through additional questioning, Mr T bore contributory responsibility due to multiple red flags he should have questioned: the implausibility of the explanation, specific withdrawal amounts, requirement to hand cash to a stranger in a car park, being told bank staff might be implicated, instructions not to disconnect calls or speak to family, and being asked to provide misleading information. The Post Office withdrawal did not represent such a significant change in account activity as to require intervention, and Mr T used his card and PIN reducing fraud risk. A 50% refund for the branch withdrawal fairly reflects shared responsibility.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website