Not upheld: scam/fraud prevention failure complaint against TSB Bank Plc

Decision detail

Summary

Mr L was victim of an email interception scam that resulted in a £95,994.21 payment to an account held with TSB. His sending bank E refunded 50% of his loss (£47,972) on 15 April 2025. Mr L complained to TSB, arguing they should have prevented the fraud. The ombudsman found TSB conducted appropriate account opening checks and could not reasonably have foreseen the account would be used for fraud. Additionally, Mr L bore contributory negligence for failing to question why an HMRC payment was directed to a separate limited company, warranting a 50% reduction in any award. Since Mr L had already received 50% compensation from E, the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Mr L was a victim of a scam, TSB did not owe him a duty of care as he was not their customer. TSB had conducted appropriate account opening checks and could not reasonably have foreseen the account would be used for fraud. Even if TSB had failed in some way, Mr L's own contributory negligence warranted a 50% reduction—he should have questioned why a payment for HMRC was being sent to a separate limited company, particularly given his business experience and the substantial amount involved. Since Mr L had already received 50% compensation from his sending bank E, there was no basis to require TSB to make further payment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website