Not upheld: scam reimbursement / irresponsible payment processing complaint against Starling Bank Limited

Decision detail

Summary

Mr B lost £1,574.50 to an impersonation scam through two payments made from his Starling account in February 2026. He complained to Starling seeking reimbursement, but the bank declined and the FOS Investigator also did not uphold the complaint. The ombudsman reviewed the case and concluded that while Mr B authorised the payments using legitimate credentials, the payment values and destination were not sufficiently suspicious to require bank intervention. The ombudsman found no evidence that Starling was aware of Mr B's vulnerability and determined that chargeback recovery would have been unsuccessful. Starling's £150 compensation for service failures in handling the complaint was deemed fair, and no further remedy was ordered.

The Ombudsman's reasoning

The ombudsman concluded that while Mr B authorised the payments, the key question was whether Starling should have intervened to prevent the scam. The ombudsman found that the payment values were not sufficiently unusual or suspicious to warrant bank intervention, the destination was a legitimate organisation, and there was no indication Mr B was at heightened risk of financial harm. The ombudsman also determined that chargeback recovery would not have been successful as the legitimate merchant could demonstrate services were provided as intended.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website