Not upheld: Fraud reimbursement (APP scams) complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY (NatWest)

Decision detail

Summary

Ms J lost significant funds to a cryptocurrency investment scam between January and July 2021 after discovering the opportunity on social media. NatWest intervened in two payments in February 2021 and warned Ms J of cryptocurrency scam risks, but failed to intervene in other suspicious payments, including two payments totalling £95,000 made within minutes on 1 March 2021. Although the ombudsman found NatWest should have identified these later payments as suspicious and intervened, it concluded that further intervention would not have prevented the loss because Ms J had told NatWest agents she had conducted her own research and was aware of risks, and she continued making payments for four months after her professional financial advisor warned her the investment was likely a scam. The complaint was not upheld and no reimbursement was ordered.

The Ombudsman's reasoning

While NatWest should have intervened in additional payments due to their suspicious nature (large amounts, rapid succession, cryptocurrency destination), the ombudsman found that further intervention would not have prevented the loss. Ms J had already told NatWest agents she had conducted research and was aware of risks. Critically, despite receiving a clear warning from her professional financial advisor in March 2021, Ms J continued making payments for four more months, indicating she was determined to proceed regardless. The ombudsman concluded Ms J was 'under the scammer's spell' and would likely have continued regardless of additional warnings from NatWest. The ombudsman also rejected the argument that Ms J's vulnerability due to bereavement should have triggered additional protective measures, finding insufficient information available to NatWest to indicate such measures were needed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website