Not upheld: Fraud reimbursement (APP scams) complaint against Wise Payments Limited

Decision detail

Summary

Mr P was the victim of fraud when his phone was stolen and thieves used his credentials to open a Wise account and transfer £805.28 from his Bank M account for unauthorized purchases. Mr P reported the fraud to Wise on 29 October 2025, and Wise confirmed it would refund the disputed payments on 3 November. However, Mr P received a full refund from Bank M on 5 November and promptly asked Wise not to process its refund to avoid duplication. Despite this request, Wise paid £402.64 (50% of the loss) on 7 November and subsequently recalled these funds on 14 November without advance warning, causing Mr P's account to go into debit. Mr P complained that Wise ignored his request, failed to clarify the payment was not compensation, and recalled the funds without warning, causing additional stress during an already difficult time. The ombudsman found that while Wise's handling could have been better, the overall conduct did not warrant compensation, as Mr P had already been made whole financially by Bank M's refund.

The Ombudsman's reasoning

The ombudsman acknowledged that while Wise could have handled certain aspects better—particularly in stopping the refund once Mr P notified them he had already been reimbursed by Bank M, and in providing advance warning before recalling the funds—these failings did not warrant compensation. The ombudsman noted that Mr P had already received full financial reimbursement from Bank M, so the dispute was purely about compensation for distress. The ombudsman concluded that the bulk of blame lay with the thieves, and while Wise's handling could have been improved, it was not poor enough to justify financial compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website