Not upheld: unauthorised transaction dispute complaint against Monzo Bank Limited

Decision detail

Summary

Mr S complained to Monzo that a £1,600 payment made on 7 October 2024 was unauthorised. Monzo refused to refund the transaction, and Mr S subsequently brought his complaint to the Financial Ombudsman Service. The ombudsman reviewed technical evidence including mobile banking logs, device registration, and biometric authentication records. The ombudsman found that the transaction was executed using Mr S's own device and biometrics, and that subsequent transactions from another of Mr S's accounts to cover the payment suggested Mr S had possession of his device. The ombudsman concluded the transaction was authorised and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman applied the Payment Services Regulations 2017 which require two elements for authorisation: authentication and consent. The transaction was executed using Mr S's own device and biometrics, which the ombudsman determined constitutes both authentication and evidence of consent. The pattern of subsequent transactions (three payments totalling £2,000 made within minutes to cover the £1,600 payment) from another of Mr S's accounts strongly suggested Mr S had possession of his device. The ombudsman found it implausible that an unknown individual could have accessed Mr S's biometrics, made the payment, then accessed another account without Mr S raising concerns. The ombudsman also noted the delay in Mr S reporting the dispute and suggested Mr S may have made the payment in expectation of receiving a service that was not delivered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website