Not upheld: fraud - romance scam - refund claim complaint against Nationwide Building Society

Decision detail

Summary

Mr E complained that Nationwide Building Society should fully reimburse losses from a romance scam, after the firm provided only a partial refund. The scammer coerced Mr E into sending money under the pretence of paying for medical bills, travel and phone subscriptions, including gift card purchases which were uncharacteristic for him. The ombudsman found that while individual payments ranged from £10-£200 and were made to common retailers over approximately one year, they did not appear suspicious at the time of processing and did not warrant intervention by Nationwide. The ombudsman concluded that Nationwide acted reasonably in providing a partial refund and that the fault lay with the scammer, not the firm, so the complaint was not upheld.

The Ombudsman's reasoning

While firms ought to be on the lookout for fraud and make additional checks in some circumstances, the individual payments were relatively small (£10-£200), made to common everyday retailers, and spread across a year without depleting the account. The ombudsman found no single payment or pattern that ought to have appeared suspicious to Nationwide at the time of processing. Even if Nationwide had been aware of gift card purchases or Mr E's vulnerabilities, the amounts and frequency would not have appeared overly concerning. The fault lies with the scammer, not the firm.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website