Partially upheld: scam/fraud - payment processing and communication failure complaint against Santander UK Plc

Decision detail

Summary

Mr U lost £1,026 to a scam via a money transfer service and complained that Santander should refund him. The ombudsman found that Santander properly processed the payment (which was not suspicious), correctly refused a chargeback (as the service was legitimately provided), and was not at fault for the scam itself. However, Santander failed to clearly communicate that a refund was not guaranteed, leading Mr U to have false expectations. The ombudsman partially upheld the complaint, awarding £50 compensation for the communication failure while rejecting the claim for the full £1,026 loss.

The Ombudsman's reasoning

The ombudsman found that Santander was not obliged to flag the payment as suspicious given its value and consistency with account activity. The funds were legitimately transferred by the money transfer service, making a chargeback claim inappropriate. However, Santander failed to clearly communicate that a refund was not guaranteed, leading to Mr U's false expectations. The scammer, not Santander, was at fault for the loss.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website