Partially upheld: scam / fraud - failure to intervene on suspicious payments complaint against Wise Payments Limited (trading as Wise)

Decision detail

Summary

Mr I fell victim to a job scam and was persuaded to open a Wise account, transferring over £5,850 to three payees over two days in November 2023. Wise initially refused to refund but later accepted they should have intervened at the £1,150 payment. The ombudsman partially upheld the complaint, finding Wise liable for £4,410 (the last three payments) but reducing compensation by 50% to £2,205 due to Mr I's contributory negligence in not questioning the implausible scheme despite lacking a contract and being asked for upfront payment.

The Ombudsman's reasoning

While Wise should have intervened at the £1,150 payment, Mr I bears some responsibility for the loss due to contributory negligence. The scam, although sophisticated with a platform and impersonation of a legitimate company, was overall implausible. Mr I should have questioned whether the simple tasks could generate the promised returns, was not provided a contract despite claimed legitimacy, and was asked for upfront payment. These factors should have raised concerns before the final three payments. A 50% reduction in compensation is fair given the shared fault.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website