Partially upheld: Authorised Push Payment (APP) scam - failure to intervene and prevent fraud complaint against Barclays Bank UK PLC

Decision detail

Summary

X fell victim to a job task scam conducted via social media, making 11 debit card payments totalling £4,696.08 to a cryptocurrency wallet between 25-28 August 2025. Barclays did not intervene during any payments despite the 11th payment being substantial and part of a rapid sequence of three cryptocurrency transactions within two hours. The ombudsman found Barclays should have intervened on payment 11 with a better automated warning about cryptocurrency scams, which would likely have uncovered the fraud. However, X is found 50% responsible for failing to research the obviously suspicious job offer despite clear red flags. Barclays is ordered to pay X 50% of payment 11 (£772.60) after accounting for credits received and contributory negligence, plus 8% simple interest.

The Ombudsman's reasoning

Barclays should have intervened on payment 11 due to the combination of substantial value, progressive increases, three cryptocurrency payments within two hours, and an emerging fraud pattern. While earlier payments (1-10) were not high value and fell within X's normal account activity patterns, payment 11 represented a turning point. A better automated warning specifically about cryptocurrency and investment scams would likely have uncovered the scam, as X had underlying suspicions and no cover story prepared. However, X bears 50% responsibility for failing to conduct adequate research on the job offer despite clear red flags including unsolicited contact, unrealistic salary terms, and no interview process.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website