Partially upheld: inadequate fraud prevention and scam protection complaint against Barclays Bank UK Plc

Decision detail

Summary

Mr J complained that Barclays failed to prevent losses from an investment scam totalling approximately £48,000 transferred from his account to his own accounts at other institutions, which were then used to purchase cryptocurrency. Barclays had intervened by blocking mobile banking and conducting detailed calls where Mr J explained the transfers were for home improvements and better interest rates, and specifically denied cryptocurrency involvement. The Ombudsman found Barclays' actions reasonable given the information available and the fact that payments went to accounts in Mr J's own name, not third parties. The complaint was partially upheld with £50 compensation awarded for service failings only, not for the scam losses themselves.

The Ombudsman's reasoning

Barclays took reasonable steps to identify and intervene on suspicious payments by blocking access and conducting detailed conversations with Mr J. Mr J provided consistent explanations (home improvements, better interest rates) and specifically denied cryptocurrency involvement when asked. The payments went to accounts in Mr J's own name, not third parties, so the fraud reimbursement scheme did not apply. Even if Barclays had probed further, Mr J demonstrated willingness to mislead financial institutions (as evidenced by his calls with R and his loan application), so further questioning would likely not have prevented the loss. Barclays' actions based on information available at the time were not unreasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website