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

Decision detail

Summary

Mr E complained that HSBC should refund £1,850.66 in debit card payments he made to a romance scammer between April 2023 and August 2025, and that HSBC provided poor service when rejecting his refund claim and failed to provide a promised welfare callback after he disclosed his vulnerabilities. The ombudsman found that whilst Mr E's family member was cruelly victimised by the scam, the APP Scam Reimbursement Rules do not apply to international payments made through another account in Mr E's name. The 40 payments (averaging £46.26, mostly under £100, spread over time to an established payee) presented no obvious fraud pattern that would reasonably alert HSBC to intervene. The ombudsman upheld HSBC's £100 compensation for service issues as fair and reasonable, and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that whilst the payments were authorised and Mr E was the victim of a cruel scam, the APP Scam Reimbursement Rules and CRM Code do not apply because the payments were international payments made through another account in Mr E's name. Under PSR, banks must balance fraud prevention against avoiding unnecessary inconvenience to legitimate transactions. The 40 payments presented no obvious scam pattern: they were low amounts (average £46.26), spread out over time, to an established payee, and to a regulated business. Mr E's own statement showed he made larger overseas payments. HSBC could not reasonably have been expected to intervene without Mr E raising concerns. The financial loss was technically that of Mr E's relative, not HSBC's customer. Regarding service, whilst the agent was dismissive, HSBC's £100 compensation was fair and reasonable given the main distress was caused by the scammer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website