Not upheld: Fraud reimbursement (APP scams) complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr R lost £18,323.83 to an employment scam through 14 faster payments made between April and October 2025 from his Barclays account. He reported the fraud in November 2025 and requested reimbursement, which Barclays declined. The ombudsman found that while Barclays had obligations to monitor accounts and detect fraud, the bank could not have prevented the loss because the payment pattern did not clearly indicate an employment scam, Mr R would have maintained his cover story if questioned, and he was determined enough to find alternative payment methods. The complaint was not upheld.

The Ombudsman's reasoning

Although Mr R authorised the payments under Payment Services Regulations and is presumed liable in the first instance, Barclays had obligations to monitor accounts and detect fraud risks. However, the ombudsman concluded that even if Barclays had intervened further, it could not have prevented the loss because: (1) the payment pattern could indicate fraud but did not necessarily point to an employment scam; (2) Mr R would likely have maintained his cover story about cryptocurrency investment if questioned; (3) any warning about cryptocurrency scams would not have been applicable to an employment scam; and (4) Mr R was determined to make the payments and would have found alternative means if Barclays had declined them. The ombudsman found no evidence Barclays could have recovered the funds given the nature of the payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website