Upheld: Fraud reimbursement (APP scams) complaint against Monzo Bank Limited
Financial Ombudsman decision DRN-6220762 of 2026-06-18T00:00:00+00:00. Fraud reimbursement (APP scams) complaint against Monzo Bank Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6220762 |
|---|---|
| Decision date | 2026-06-18T00:00:00+00:00 |
| Firm | Monzo Bank Limited |
| Product | Current account |
| Claim type | Fraud reimbursement (APP scams) |
| Outcome | Upheld |
| Remedy | Monzo must pay G: (1) £34,479.39 USD converted at the rate on 28 June 2024; (2) £40,836.28 GBP; (3) 8% simple interest per year on both amounts from 28 June 2024 to settlement date, with appropriate tax deduction certificate if applicable. |
Summary
G, a limited company, lost £75,315.67 across three payments to a Monzo customer's account as a result of an email interception scam. Monzo did not refund the loss. The ombudsman found that while Monzo could not have reasonably foreseen fraud at account opening, it should have intervened on 3 June 2024 when a large payment landed in a student account with a £100 monthly profile, followed immediately by an unusual international payment. Had Monzo made enquiries and scrutinised the supporting documentation (which contained mismatches and red flags), it would have restricted spending and prevented the loss. The complaint was upheld and Monzo was directed to compensate G for the full amount plus interest.
The Ombudsman's reasoning
While Monzo could not have reasonably foreseen fraud at account opening, the pattern of activity on 3 June 2024 should have triggered intervention. A large payment of £34,479.39 into a student account expecting £100 monthly, immediately followed by an unusual £9,974 international payment, was inconsistent with the account profile. Monzo should have made enquiries and requested proof of entitlement. The supporting documentation provided would not have satisfied reasonable scrutiny (invoice mismatch, conflicting explanations, red flags from online search). Therefore, Monzo should have restricted spending, preventing the loss when fraud was later reported.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Monzo Bank Limited, all decisions | 212 | 10% |
| Fraud reimbursement (APP scams), all decisions | 20,976 | 21% |
| Current account, all decisions | 52,014 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website