Not upheld: account blocking and police involvement in fraud prevention complaint against Nationwide Building Society

Decision detail

Summary

Mr M complained that Nationwide Building Society wrongfully blocked his account and online banking, and then involved police when he visited the branch to resolve the issue. Nationwide had identified unusual transactions and blocked the account to investigate potential fraud, given Mr M's history of being victimized by scams. When Mr M attended the branch, police officers were present as part of the Banking Protocol, an industry-wide fraud prevention scheme. The ombudsman found that Nationwide acted reasonably and within its rights to protect Mr M from potential fraud, despite the distress caused by the police involvement, and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Nationwide had reasonable grounds to delay payments based on the account history and Mr M's vulnerability to scams. The Banking Protocol is an industry-wide initiative developed to protect customers from fraud, and financial institutions have a duty to protect customers and their money. While the police involvement caused Mr M distress, the ombudsman determined that Nationwide was within its rights to invoke the Banking Protocol and that the measures, though potentially intrusive, are necessary to safeguard customers from scams and fraud.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website