Not upheld: CIFAS fraud marker lodgement complaint against HSBC UK Bank plc

Decision detail

Summary

Mr U complained that HSBC improperly lodged a CIFAS fraud marker on his account. In September 2024, £1,500 in fraudulent funds were sent to Mr U's HSBC account from another bank's customer who had suffered fraudulent access. Mr U admitted receiving the money, knowing it was not his, and using it to send money abroad during a claimed family emergency. HSBC attempted to contact Mr U but received no response before closing his account and lodging the marker. The ombudsman found that HSBC had sufficient clear evidence to lodge the marker, as Mr U's use of funds he knew were not his amounted to theft, and upheld HSBC's decision not to remove the marker.

The Ombudsman's reasoning

The ombudsman applied the CIFAS marker requirements: there must be reasonable grounds to believe an identified fraud has been committed and the evidence must be clear, relevant and rigorous. The ombudsman found that HSBC had clear evidence that fraudulent funds were deliberately sent to Mr U's account, that Mr U received and used these funds despite knowing they were not his, which amounts to theft. Although HSBC's contact attempts were limited, they used the correct mobile number on file. Mr U provided no satisfactory explanation for not responding or for using funds he knew were not his.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website