Not upheld: CIFAS marker application - misuse of facility complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss O complained that HSBC unfairly applied a CIFAS 'misuse of facility' marker after she opened a current account and shared the debit card with an unknown individual she met on social media who claimed to represent a cryptocurrency investment. A fraudulent payment of £49,786.54 was deposited and quickly dispersed from the account, reported as fraudulent by the sending bank. Miss O was evasive when HSBC questioned her about the transactions and did not immediately report the unrecognised activity. The ombudsman found HSBC had sufficient evidence to apply the marker based on the fraudulent indemnity report and Miss O's suspicious behaviour, and rejected her claim that she was a scam victim due to lack of corroborating evidence and inconsistencies in her account.

The Ombudsman's reasoning

The ombudsman found that HSBC had sufficient evidence to apply the CIFAS marker based on the fraudulent indemnity report, the recent account opening, rapid dispersal of funds, Miss O's failure to respond to initial contact, and her evasive responses when she did contact HSBC. The ombudsman found Miss O's testimony unreliable due to inconsistencies in her account and lack of corroborating evidence for the cryptocurrency scam. The ombudsman concluded that Miss O's behaviour suggested she was aware the account activity was improper but chose not to report it, and that her failure to immediately report the unrecognised transactions was unusual and suggested awareness of wrongdoing.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website