Not upheld: scam/fraud - failure to prevent payments to cryptocurrency exchanges complaint against Santander UK Plc

Decision detail

Summary

Mr A fell victim to a romance scam involving a cryptocurrency investment scheme. He made 12 disputed payments totalling £46,591.35 to cryptocurrency exchanges and accounts in his own name after being introduced to the scheme by an individual he met on a dating website. Santander intervened on multiple occasions and discussed the payments with Mr A, but he provided vague responses and did not disclose the true source of the investment opportunity. The ombudsman found that while Santander should have intervened more robustly at payment 5, the evidence demonstrated that Mr A was emotionally manipulated by the scammer and would have found alternative payment methods regardless of stronger warnings. The complaint was not upheld as Santander could not have prevented the scam.

The Ombudsman's reasoning

While Santander should have intervened more robustly at payment 5 (£4,119.60) given the significant value and cryptocurrency exchange involvement, the ombudsman concluded that intervention would likely have been unsuccessful. The evidence showed Mr A was in a romantic relationship with the scammer where trust and emotional manipulation were significant factors. Even when payments were declined and Mr A understood there were warnings, he found alternative methods to proceed (involving family members, opening new accounts, using different platforms). The ombudsman found that Mr A would likely have been comforted by X and proceeded regardless of stronger warnings from Santander.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website