Not upheld: scam reimbursement / APP scam protection complaint against Bank of Scotland Plc (trading as Halifax)

Decision detail

Summary

Mr N lost £15,117 in 2021 when he sent funds to an individual (Mr F) to invest in a cryptocurrency scheme (X) that later proved to be a scam. He complained to Halifax in late 2025 seeking reimbursement. The ombudsman found that Mr N provided insufficient evidence linking his payment to the scam, and that even if such evidence existed, the payment would not fall under CRM Code protection because Mr F was not shown to have knowledge of or involvement in the scam. Additionally, Halifax did not breach its fraud prevention obligations as the scam was not identified until months after the payment was made. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Mr N failed to provide clear evidence linking his payment to Mr F to the scam perpetrated by X. Even if such evidence existed, the payment would not fall under CRM Code protection because Mr N paid the intended recipient (Mr F) for what he believed was a legitimate purpose, and there was no evidence that Mr F was aware of or involved in the scam operation or intentionally deceived Mr N. Additionally, Halifax did not breach its fraud prevention obligations because there were no clear red flags at the time of payment that would have alerted Halifax to the scam risk, as X was not identified as fraudulent until months after the payment was made.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website