Not upheld: scam and fraud - refund claim complaint against Barclays Bank UK PLC

Decision detail

Summary

Ms S complained that Barclays should refund $150,000 she paid to two companies (C and G) for an overseas property investment that she claimed was a scam. The $50,000 payment to C was recalled and returned by Ms S herself approximately six weeks after being made. For the $100,000 payment to G, Ms S received a partial return of $1,850, and a £100,000 Sterling credit that was subsequently debited. The ombudsman found no conclusive evidence of a scam despite Ms S providing instant message screenshots and other documentation, and no regulator warnings existed about the companies involved. The complaint was not upheld as Barclays had no obligation to intervene on an authorised payment without clear evidence of fraud or foreseeable harm.

The Ombudsman's reasoning

The ombudsman found that while the investment opportunity likely failed to deliver what Ms S expected, there was insufficient evidence that she was the victim of a scam. The instant messages and documentation provided did not constitute conclusive evidence of fraud, and no adverse information or regulator warnings were found about the companies involved. The lack of investment returns does not necessarily indicate a scam but could reflect a failed investment or failed firm. Without clear evidence of a scam, Barclays could not have been expected to intervene on an authorised payment instruction.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website