Not upheld: Fraud reimbursement (APP scams) complaint against Shawbrook Bank Limited

Decision detail

Summary

Mr D lost £18,000 to a task-based job scam in June 2023, sending funds from his Shawbrook savings account to his account with bank X, which were then forwarded to cryptocurrency wallets and scammers. Bank X previously reimbursed 50% of the final £9,000 payment following a separate FOS complaint. Mr D then complained to Shawbrook, arguing they should have intervened on all three payments. The ombudsman found that while the final payment could have warranted intervention due to the pattern of escalating amounts, Mr D should have recognised multiple red flags (unsolicited offer, no formal application, immediate requirement to send own funds, unaffiliated credit source). Liability was split 50% Mr D, 25% Shawbrook, 25% X, and since X had already paid 50% of the final payment, Shawbrook owed no additional redress.

The Ombudsman's reasoning

While Shawbrook could have intervened on the final £9,000 payment due to the pattern of increasing payments over three days, Mr D bears significant responsibility for the loss. The job offer had multiple red flags: it was unsolicited, required no formal application process, required Mr D to send his own funds immediately, and the credit source was from an unaffiliated company. Mr D should have had serious concerns about legitimacy by the third payment. Liability is split 50% Mr D, 25% Shawbrook, 25% X. Since X has already paid 50% of the final payment (covering both banks' combined 50% liability), Shawbrook owes no additional redress.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website