Not upheld: Account closure without notice complaint against Monzo Bank Ltd

Decision detail

Summary

Miss F complained that Monzo Bank Ltd wrongly recorded a Cifas 'misuse of facility' marker against her name and closed her account after she received £3,000 in funds that were later identified as fraudulently sent. Miss F claimed she received the funds on behalf of her cousin A for cryptocurrency purposes and distributed most of them as instructed, but her account of events was inconsistent—initially telling Monzo the funds were for currency exchange, later claiming cryptocurrency, and providing evidence (such as a chat dated after the transaction) that did not support her version. The ombudsman found Miss F's credibility undermined by inconsistencies, lack of supporting evidence for key claims, and discrepancies in the amounts she retained. The ombudsman upheld Monzo's decision to record the marker and close the account, finding Monzo had reasonable grounds based on fraud notification and met the required standards for recording a Cifas marker.

The Ombudsman's reasoning

The ombudsman found multiple inconsistencies in Miss F's account of events that cast doubt on her credibility. Miss F's explanation changed from currency exchange to cryptocurrency, she could not provide evidence of communication with A or his instructions, the chat history with L was dated after the transaction occurred, and the amount she retained (£500) did not match her stated reason (£300 debt). The evidence Miss F provided did not support her testimony, and Monzo had reasonable grounds to believe financial crime had occurred based on third-party notification. The ombudsman concluded Monzo met the requirements to record a 'misuse of facility' Cifas marker with clear, relevant and rigorous evidence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website