Not upheld: Fraud reimbursement (APP scams) complaint against Metro Bank PLC

Decision detail

Summary

Ms K, a vulnerable individual with a chronic condition, fell victim to a sophisticated investment scam orchestrated by scammers who coached her extensively to deceive banks. She made five payments totalling £34,967.12 to a crypto exchange account under her control, believing she was investing in a legitimate opportunity. Metro Bank blocked the initial payment but failed to intervene on subsequent payments despite patterns suggesting potential fraud. While the ombudsman found Metro's interventions should have been stronger and more probing, it concluded that Ms K was so deeply under the scammers' spell and so well-coached in giving false cover stories that even better interventions would likely not have prevented her losses, particularly given she ignored Bank H's warnings about scammer coaching tactics.

The Ombudsman's reasoning

While Metro should have implemented stronger interventions at payments 1 and 3 under PSR and Consumer Duty requirements, the ombudsman found on balance of probabilities that even with better interventions, Ms K would likely have ignored them. Ms K was heavily coached by scammers to give false answers and had prepared cover stories. Bank H's warnings about scammers coaching victims to lie did not deter Ms K from continuing to follow the scammers' instructions. The evidence suggests Ms K was so deeply under the scammers' spell that appropriate questions, warnings and education would most likely not have worked.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website