Not upheld: scam protection - failure to intervene on suspicious cash withdrawal complaint against Nationwide Building Society

Decision detail

Summary

Mr H complained that Nationwide Building Society failed to protect him from a scam when he withdrew £6,000 in cash to purchase a vehicle that was later found to be stolen and cloned. The ombudsman found that Nationwide should have spotted the withdrawal as presenting a fraud risk and conducted adequate questioning in branch, but concluded that even with reasonable intervention, the sophisticated scam would likely not have been prevented. Mr H had taken several precautions including document verification and an HPI check, and was en route to inspect the vehicle, meaning a general warning about the underpriced vehicle would not have deterred him. The complaint was not upheld as Nationwide's failure to adequately question Mr H did not cause his loss.

The Ombudsman's reasoning

While Nationwide should have recognised the payment presented a fraud risk and ought to have conducted adequate questioning, the ombudsman was not persuaded that a reasonable intervention would have prevented the loss. The scam was sophisticated, and Mr H had taken several steps (document verification, HPI check, planned vehicle inspection) that would have reassured both him and Nationwide. A general warning about the underpriced vehicle alone would not have deterred Mr H from proceeding, particularly as he was en route to inspect the car in person. The ombudsman concluded that Nationwide's failure to adequately question Mr H did not cause his loss.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website