Not upheld: scam and fraud - failure to prevent payment to scammer complaint against Monzo Bank Limited

Decision detail

Summary

Miss P lost £100 to a scam in December 2025 when she sent funds via payment service provider L to a scammer. She complained to Monzo, which refused to reimburse her, and brought the complaint to the FOS. The ombudsman found that the payment was not unusual or suspicious in nature—it was a single transaction of modest value sent via a legitimate service, and Miss P had made larger transactions previously. Although Miss P was vulnerable and new to the UK with English as a second language, there was no evidence Monzo should have been aware of this to trigger additional protective steps. The complaint was not upheld and no refund was ordered.

The Ombudsman's reasoning

The ombudsman found that the £100 payment was not of a value or nature that would have appeared unusual or suspicious to Monzo. The payment was a single transaction (not multiple large payments), was sent via a legitimate money transfer service, and Miss P had made larger transactions previously, so it would not have stood out as remarkable. Although Miss P had some failed transactions due to insufficient funds, this would not have suggested heightened scam risk. The ombudsman balanced the need for firms to monitor for fraud against the practical necessity of allowing customers to use their accounts without excessive questioning. There was no evidence Monzo should have been aware of Miss P's vulnerability or language barriers to trigger additional protective measures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website