Not upheld: Fraud reimbursement (APP scams) complaint against Santander UK Plc

Decision detail

Summary

Mr N complained that Santander refused to refund money he lost to an investment scam. Mr N made multiple high-value international payments that triggered Santander's fraud detection systems. When Santander called to conduct a security check, the advisor asked some questions but Mr N insisted the investment was legitimate and FCA-regulated (which was false). Although the ombudsman found Santander's intervention could have been more thorough, it concluded that even stronger questioning would not have prevented the loss because Mr N was completely convinced by the scammer and actively resisted fraud suggestions. The complaint was not upheld, particularly given the 3-year delay before Mr N reported the scam, making fund recovery unlikely.

The Ombudsman's reasoning

The ombudsman accepted that Santander's intervention could have been more thorough with stronger probing questions about investment experience, promised returns, and how the investment was discovered. However, the ombudsman found that even a stronger intervention would not have prevented the loss because Mr N was completely under the spell of the scam, had been shown apparent returns by the scammer, was assured of insurance coverage, and actively resisted suggestions of fraud during the call. Mr N also provided inaccurate information (claiming FCA regulation when there was none), indicating he would not have been persuaded by further questioning. Additionally, the 3-year delay in reporting made fund recovery unlikely.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website