Not upheld: CIFAS fraud marker lodgement - alleged wrongful reporting complaint against Metro Bank PLC

Decision detail

Summary

Miss E complained that Metro Bank wrongfully lodged a CIFAS fraud marker against her following a £400 fraudulent payment into her account. Metro received a fraud notification from another bank regarding the £400 payment made as a result of an impersonation scam, and observed that Miss E immediately transferred £1,100 via a money transfer service. Miss E initially did not respond to Metro's inquiry, later claiming she was a victim of ID fraud. The ombudsman found that Metro had clear evidence of fraudulent activity, including a pattern of six payments from differently named individuals over a short period and Miss E's admission that the transfer was hers, and upheld Metro's decision to lodge the marker.

The Ombudsman's reasoning

The ombudsman found that Metro had clear, relevant and rigorous evidence to lodge a CIFAS marker. The pattern of six payments from differently named individuals, combined with Miss E's immediate transfer of funds and her admission that the transfer was hers, demonstrated fraudulent activity. The ombudsman rejected Miss E's explanation that she was a victim of ID fraud, reasoning that an unknown third party would not send money into her account without means to access it, and that Miss E should have reported receiving unrecognised funds rather than immediately transferring them. The evidence met the CIFAS requirement of reasonable grounds to believe an identified fraud was committed with Miss E's involvement, going beyond mere suspicion.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website