Not upheld: investment scam - refund claim and failure to intervene complaint against Santander UK Plc

Decision detail

Summary

Mr F, a retiree, lost £19,680 to an investment scam involving Company C and Person J. He made five payments from his Santander account to Firm W between July and August 2024, which were then transferred to gold and silver merchants. When Mr F attempted withdrawals in December 2024, he became suspicious and contacted Santander, who declined to help. Mr F complained to Santander seeking a full refund plus compensation, claiming the firm failed to recognise his vulnerability and intervene despite red flags. The ombudsman found that while Mr F likely fell victim to a scam, there was insufficient evidence to establish that the funds ultimately reached the scammers rather than the legitimate merchants shown in the payment trail, and therefore did not uphold the complaint.

The Ombudsman's reasoning

Although Mr F's testimony and evidence of communication with a scammer were considered, there was insufficient evidence to establish that the payments from Santander to Firm W were part of a scam and ultimately benefited the scammers. The payment trail showed funds went to legitimate gold and silver merchants rather than Company C. Call recordings did not mention the specific payments or merchants. A full payment trail linked to the fraudulent company would be required to satisfy the high legal threshold for fraud, which Mr F could not provide despite requests. Without establishing the payments related to the described scam, Santander cannot fairly be directed to refund the transactions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website