Not upheld: Fraud reimbursement (APP scams) complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr C was scammed into setting up an account with money remitter L and transferring £555 from his HSBC account, believing he would receive a refund and compensation. HSBC declined to reimburse the payment, arguing it was authorised and covered by no reimbursement scheme. The ombudsman upheld HSBC's decision, finding that Mr C authorised the payment by completing the required steps under open banking, even though he was deceived about its purpose. The payment was not suspicious enough to warrant additional checks, and reimbursement schemes do not apply to transfers to the customer's own account.

The Ombudsman's reasoning

Mr C authorised the payment by completing the agreed steps to link his L account and enter the payment amount, even though he was deceived about the purpose. Under the PSRs, consent is given when the payer completes the agreed steps, and there is no provision for when a customer is tricked. The payment was not suspicious enough to warrant additional checks given its low value, that it was to Mr C's own account, and that it was a single transaction. Reimbursement schemes such as CRM and APP rules do not apply to payments made to the customer's own account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website