Not upheld: scam and fraud - refusal to refund losses from investment scam complaint against Kroo Bank Ltd

Decision detail

Summary

Mr R complained that Kroo Bank refused to refund over £40,000 he lost to a crypto-investment scam after seeing an online advert and accessing a fraudulent trading platform. He was persuaded to invest repeatedly and obtained some funds through personal loans, believing his investment had reached £195,000 before realizing the scam when asked for further payments to withdraw money. When questioned by Kroo Bank and his personal bank, Mr R provided misleading information, claiming the payments were for house renovations. The ombudsman found that while Kroo Bank should have intervened more often on the suspicious payments, it was unlikely such interventions would have succeeded given Mr R's heavy influence by the scammer and his willingness to mislead banks and follow the scammer's guidance. The complaint was not upheld.

The Ombudsman's reasoning

While Kroo Bank should have intervened more often given the payment values and elevated risk of crypto-related payees, the ombudsman was not persuaded that proportionate and timely interventions would likely have succeeded in uncovering the scam. Mr R was heavily under the scammer's influence, having been in contact since at least November 2024, and demonstrated willingness to follow the scammer's guidance including taking out loans and opening new accounts. Mr R also continued to mislead banks and make payments despite family concerns, suggesting he would not have been deterred by bank interventions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website