Not upheld: scam - failure to prevent and failure to recover funds complaint against Bank of Scotland plc

Decision detail

Summary

Mrs B complained that Bank of Scotland failed to refund money she lost in a scam where a fraudster convinced her to pay fees to withdraw 'earned income' from a fake online platform. Mrs B made four debit card payments totalling over £6,000 to a crypto exchange on 2 October 2025. The ombudsman found that BOS should have intervened on the fourth payment (£3,080) due to its size and the pattern of multiple crypto payments in one day. However, the ombudsman concluded that intervention would not have prevented the scam because Mrs B was being coached by the scammer on what to say and had already ignored a family member's warning. Additionally, the funds could not be recovered through chargeback because Mrs B received the cryptocurrency she paid for; the loss occurred only when she transferred it to the scammer. The complaint was not upheld.

The Ombudsman's reasoning

While BOS should have intervened on the fourth payment due to its size and the pattern of multiple crypto payments in one day, the ombudsman found that intervention would not have prevented the scam. Mrs B was being coached by the scammer on what to say and had already ignored a family member's warning. A generic crypto scam warning would not have resonated with her. Additionally, the funds could not be recovered through chargeback because Mrs B received the cryptocurrency she paid for; the loss occurred only when she transferred it to the scammer. The APP reimbursement scheme did not apply as the payment was to an account in Mrs B's control.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website