Not upheld: scam liability and fraud prevention complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss M complained that HSBC should reimburse £900 she lost to a police impersonation scam where she was deceived into authorising two payments. The ombudsman acknowledged Miss M was a victim of a cruel scam but found that the payments were not suspicious enough to have triggered additional checks by HSBC. Although swift fund movements can indicate fraud, Miss M's account history showed she regularly transferred funds quickly across multiple accounts, making these transactions consistent with her normal banking activity. The ombudsman concluded there were no failings by HSBC and did not uphold the complaint.

The Ombudsman's reasoning

Although swift movement of funds in and out of an account can be a fraud indicator, it can also be genuine banking activity when customers operate multiple accounts. Miss M's account history demonstrated she regularly remitted funds quickly, often on the same day. Having reviewed the account, payment values, and merchants involved, the ombudsman was not persuaded the two payments were suspicious enough to warrant additional enquiries before processing. Chargeback recovery was not viable as the funds were used to purchase from legitimate merchants.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website