Not upheld: scam and fraud - failure to prevent or recover losses from romance and recovery scams complaint against Barclays Bank UK PLC

Decision detail

Summary

Miss M complained that Barclays Bank UK PLC failed to refund approximately £29,050.78 lost to romance and recovery scams involving fake investment opportunities. She made around 23 payments to crypto exchanges and investment merchants after being coached by scammers on what to tell Barclays' security team. Although Barclays intervened on some later payments and asked reasonable questions, Miss M provided inaccurate answers, making it difficult for the bank to uncover the scam. The ombudsman found that earlier intervention would not have prevented the scam given Miss M's coached responses and the additional warning she received from another provider. The complaint was not upheld, and the ombudsman found Barclays' £100 compensation offer reasonable.

The Ombudsman's reasoning

The ombudsman concluded that although Barclays intervened on some later payments, Miss M was being coached by scammers and provided inaccurate answers to Barclays' reasonable security questions. The ombudsman found that any further interventions by Barclays earlier in the scam would not have uncovered it, given Miss M's testimony about being coached, her inaccurate responses, and the additional warning she received from the EMI. The ombudsman also found that recovery was not possible as funds were sent to accounts in Miss M's name at genuine crypto exchanges and the EMI, and chargebacks would not have been successful. The ombudsman determined that Barclays' £100 compensation offer was reasonable and that the account closure was conducted with adequate notice.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website