Not upheld: scam / fraud protection failure complaint against Wise Payments Limited

Decision detail

Summary

Ms J invested €143,275 in an overseas property development scheme through Wise in 2019, receiving initial returns before the project stalled during the pandemic. After years of minimal progress and eventual news reports of law enforcement investigations, Ms J complained to Wise in 2025 that it failed to protect her from a scam by not conducting fraud checks on the high-value international transfers. The ombudsman found the evidence pointed to a failed legitimate investment rather than a fraudulent scheme, noting that properties existed, some work was completed, a court had approved the company's continuation, and H maintained contact with investors for years. Even if fraud had occurred, the ombudsman concluded Wise could not reasonably have identified it through customer intervention, as it took Ms J years to become suspicious and investigating authorities have not definitively concluded fraud was involved.

The Ombudsman's reasoning

The ombudsman concluded this was a failed investment rather than a scam because: (1) no conclusive findings of fraud exist; (2) returns were contingent, not guaranteed; (3) H remained in contact for years (inconsistent with scam behaviour); (4) properties existed and some work was completed; (5) a court had reviewed H's finances and approved continuation; (6) Wise saw nothing concerning in H's account activity. Even if it were a scam, Wise could not reasonably have identified it through customer questioning, as it took Ms J years to become suspicious and authorities investigating for some time still haven't concluded it was fraudulent.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website