Not upheld: fraud and scam losses - inadequate intervention and refusal of full refund complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Miss F lost £21,830.56 to a cryptocurrency job scam after making 23 card payments based on false promises of earning commission through review tasks. Halifax intervened on the sixth payment (£3,880) but acknowledged it did not do enough during that intervention. Halifax offered a 50% refund from that point onwards plus £50 compensation, which Miss F rejected and escalated to the FOS. The ombudsman upheld Halifax's offer, finding that while the firm should have been alert to fraud indicators, Miss F bore contributory responsibility for not independently verifying the scheme, continuing to send money despite withdrawal problems, and being instructed to conceal the purpose from her bank.

The Ombudsman's reasoning

The ombudsman found that while Halifax should have been alert to fraud indicators and did intervene appropriately on payment six, Miss F bore some responsibility for her losses. The ombudsman noted that the scheme's request for upfront funds was highly unusual, Miss F did not take independent steps to verify legitimacy, she continued sending money despite withdrawal issues, and she was instructed to conceal the purpose from her bank. The ombudsman concluded that had Miss F disclosed the true purpose, Halifax would likely have uncovered the scam. Card payments are not protected by PSR mandatory reimbursement rules, and the 50% refund from the point of intervention was considered fair given Miss F's contributory negligence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website