Not upheld: investment scam - refund claim complaint against Bank of Scotland plc

Decision detail

Summary

Mr F complained that Bank of Scotland plc should refund £600,000 he lost through a forex trading investment scam involving platform S and company X. Mr F made multiple payments to S between February and March 2025, which were transferred to X, and later withdrew partial funds before losses mounted. BOS declined the fraud claim, stating it was a genuine investment that failed. The ombudsman found the payments did not qualify as APP scams under the Reimbursement Rules because funds reached the intended recipient for the intended purpose, and while BOS should have intervened earlier, there was no evidence intervention would have prevented the loss given both entities appeared legitimate.

The Ombudsman's reasoning

The ombudsman applied the Faster Payment Scheme Reimbursement Rules, which require evidence of APP scam involving fraudulent deception. The payments went to the intended recipient (S) for the purpose Mr F intended (investment), so the definition of APP scam was not met. While BOS should have intervened earlier and asked about ultimate destination of funds, there was no evidence that intervention would have prevented the loss, as both S and X appeared legitimate based on available information. The investment was recommended by a trusted friend rather than discovered through typical scam channels, and X provided professional documentation with appropriate risk warnings.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website