Not upheld: scam - failure to prevent fraud complaint against Santander UK Plc

Decision detail

Summary

Miss R lost over £21,000 to a sophisticated job scam where she was instructed to pay fees to unlock earnings. She made approximately 12 payments from her Santander account to various providers and crypto exchanges, with funds ultimately converted to cryptocurrency and sent to the scammer. The ombudsman found that Santander should have intervened during the third payment on 26 June 2025 based on unusual transaction patterns, but concluded that such intervention would not have prevented the scam due to the scammer's extensive coaching of Miss R on how to answer security questions and provide false information to banks. The complaint was not upheld as Santander could not be held liable for the loss, and the APP reimbursement scheme did not apply as payments were to accounts in Miss R's own name.

The Ombudsman's reasoning

While Santander should have intervened during payment 3 on 26 June 2025 based on the unusual transaction pattern, the ombudsman found that such intervention would not have prevented the scam. The scammer had extensively coached Miss R on how to answer security questions, as evidenced by screenshots and her provision of false information to other providers. The scammer had also set up alternative payment methods and instructed Miss R on what to say if questioned. Even if Santander had asked questions or provided warnings about crypto scams, Miss R had already received such warnings from another provider without effect. The APP reimbursement scheme did not apply as payments were to accounts in Miss R's own name, and funds could not be recovered as they had already been converted to cryptocurrency and sent to the scammer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website