Not upheld: investment scam - alleged failure to intervene and refund complaint against Bank of Scotland plc

Decision detail

Summary

Mr Y complained that Bank of Scotland should refund payments he made as part of an alleged investment scam. He claimed he was contacted via social media, directed to an investment platform, and made 11 payments totalling £45,500 to his cryptocurrency account between June 2024, which he believed were being invested. He argued Bank of Scotland should have intervened after the fourth payment as they were escalating and out of character. The ombudsman found insufficient evidence that a scam had occurred, noting Mr Y's recollections were limited, he had made similar cryptocurrency payments in 2023 without complaint, and he lacked supporting evidence such as messages with the alleged scammer or proof his money was lost to scammers rather than through legitimate trading. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Mr Y's recollections were limited and not particularly detailed, the critical issue was insufficient evidence to establish that a scam had actually occurred. Although the pattern of frequent cryptocurrency payments appeared similar to fraudulent activity patterns, Mr Y had made similar payments in 2023 which he did not complain about, suggesting they were legitimate. The ombudsman noted there was no supporting evidence that Mr Y was pressured into payments, manipulated by false statements, or refused withdrawals. Crucially, Mr Y could not provide the messages exchanged with the alleged scammer. Without sufficient evidence of a scam, the complaint about Bank of Scotland's failure to protect him could not succeed, as that complaint was dependent on establishing the scam had occurred.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website