Partially upheld: failure to prevent investment scam fraud complaint against Santander UK Plc

Decision detail

Summary

Mr R lost £75,629.59 across multiple accounts to an investment scam involving a celebrity-endorsed online investment platform that required purchasing physical gold overseas. Santander processed 8 card payments totalling £12,688.84 between May and June 2023. When Mr R attempted additional payments that were declined, Santander staff spoke to him but failed to ask sufficient questions or provide warnings about common scam indicators. The ombudsman found Santander should have intervened at payment 4 with appropriate questioning and warnings, which would likely have prevented the scam. However, Mr R was held 50% liable for contributory negligence due to insufficient research and failure to question the unusual investment structure. Santander was ordered to refund 50% of payments from transaction 4 onwards (£3,615.13 after credits) plus 8% interest.

The Ombudsman's reasoning

Santander should have asked more questions when Mr R attempted multiple payments to an international gold provider and staff spoke to him about declined payments. Had proportionate questioning occurred, Mr R would have disclosed the celebrity-endorsed online investment scheme, which would have triggered appropriate warnings about common scam indicators. The ombudsman found Mr R would have been honest if questioned earlier, as evidenced by his honesty in later conversations with his other account provider. However, Mr R bore contributory negligence (50%) for not researching the investment, not questioning the unusual gold purchase requirement, and not discovering the existing FCA warning or celebrity's website warnings about fake endorsements.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website