Not upheld: scam reimbursement - fraud prevention adequacy complaint against Wise Payments Limited

Decision detail

Summary

Mr J complained that Wise Payments Limited refused to reimburse £1,800 lost to an HMRC impersonation scam via debit card payments made on 21 November 2025. The ombudsman found that the payments were not unusual or uncharacteristic compared to Mr J's typical spending and did not raise sufficient fraud concerns to warrant intervention. While Wise did freeze one £650 payment and require verification, this was proportionate and did not indicate suspicion of an impersonation scam. Once Mr J reactivated his card, subsequent payments could reasonably be processed. The complaint was not upheld as chargeback rules do not apply to scams and no significant failings were found in Wise's fraud prevention measures.

The Ombudsman's reasoning

The ombudsman found that the payments were not unusual or uncharacteristic when considered against Mr J's typical spending patterns and were not of such significant value to warrant intervention. While Wise did intervene on one £650 payment by freezing the card and requiring verification, this was proportionate and did not raise suspicion of an impersonation scam. Once Mr J reactivated his card, subsequent payments could reasonably be processed without further intervention. The ombudsman noted that chargeback rules do not apply to scams, limiting recovery options.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website