Not upheld: scam refund claim complaint against Starling Bank Limited

Decision detail

Summary

Ms N complained to Starling Bank Limited seeking a refund for money she claimed to have lost to a scam involving cryptocurrency investments. The bank's records showed Ms N received multiple credits from various individuals and made payments to several cryptocurrency platforms. Ms N provided inconsistent explanations about these transactions, initially telling Starling that she was helping friends send funds to crypto exchanges, but later claiming the funds were borrowed for her own personal investment. The ombudsman found Ms N's testimony unreliable due to multiple discrepancies and could not establish that a scam had occurred or determine the actual loss suffered. Consequently, the complaint was not upheld and no refund was directed.

The Ombudsman's reasoning

The ombudsman found that Ms N's testimony was unreliable due to multiple discrepancies and inconsistencies. Critically, the ombudsman could not establish that a scam had occurred or that Ms N had suffered an actual loss. The source of funds for some disputed transactions was not evidenced, and it could not be determined whether Ms N benefited from some transactions. Without establishing both that a scam occurred and the actual loss suffered, the ombudsman could not fairly direct Starling to refund the transactions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website