Not upheld: unauthorised transactions / disputed fraud claim complaint against Revolut Ltd

Decision detail

Summary

Mr H complained that Revolut failed to refund £2,097.80 in disputed ATM withdrawals made after he lost his debit card. Mr H claimed an unauthorised individual made the withdrawals using his card and PIN. Revolut declined to refund, arguing the transactions were authenticated and Mr H's account activity suggested familiarity with them. The ombudsman found the evidence indicated Mr H likely authorised the transactions or had knowledge of them, particularly given that large credits were received immediately before the withdrawals and Mr H had previously asked Revolut how to prevent fraud flags during similar withdrawal patterns. The complaint was not upheld and no refund or compensation was ordered.

The Ombudsman's reasoning

The ombudsman applied The Payment Services Regulations 2017, which require refunds for unauthorised transactions. However, the ombudsman found the evidence strongly suggested Mr H either authorised the transactions or had knowledge of them. The timing of large credits immediately before the disputed withdrawals, combined with Mr H's prior inquiry about preventing fraud flags during similar withdrawal patterns, indicated awareness of the account activity. The ombudsman found it implausible that an opportunist would observe Mr H's PIN, monitor his movements, and then use the card immediately after large credits were received. The ombudsman also noted inconsistencies in Mr H's testimony regarding the £1,000 credit sender.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website