Not upheld: scam protection and fraud prevention complaint against Wise Payments Limited (trading as Wise)

Decision detail

Summary

Mr A complained that Wise should refund him after he lost approximately $30,000 and €15,000 in what he believed was an investment scam orchestrated by person O, whom he met in an online cryptocurrency community. Mr A argued Wise should have intervened given the high-value, rapid transactions to a cryptocurrency exchange and his prior fraud history. The ombudsman found the evidence did not establish a scam; rather, Mr A knowingly invested in high-risk speculative investments through an unregulated individual, aware of the risks involved. Key factors included O's transparent discussion of investment risks, absence of typical scam indicators, and O's return of €5,000 and use of his own account. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that while Mr A lost money, the evidence did not establish a scam. Key factors included: O did not hold himself out as a professional or regulated individual; O described investments as high-risk and speculative; O suggested caution and waiting; Mr A initiated most investment increases; O returned €5,000 (unusual for scammers); O used his own account to receive funds (contrary to typical scam layering); and the messages did not contain misleading claims. The ombudsman found Mr A knowingly invested through an unregulated individual in high-risk areas with awareness of potential total loss.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website