Not upheld: scam reimbursement claim - recipient account provider liability complaint against Tide Platform Ltd trading as Tide

Decision detail

Summary

Mr E was victim of a rental property scam and transferred £2,700 to an account provided by Tide. Tide recovered £44.16 but returned it to P's account in December 2024 following an indemnity, rather than directly to Mr E. An FOS Investigator initially upheld the complaint regarding the £44.16, but the ombudsman disagreed. The ombudsman found Tide had not failed in any causal way: they properly verified the account holder's identity at opening, could not have foreseen fraudulent use, conducted proportionate monitoring, and followed standard practice in returning recovered funds to the sending PSP. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that merely providing an account used in a scam does not automatically entitle a customer to reimbursement unless the firm failed in some causal way. Tide did not fail at account opening as they properly verified identification. The account activity was consistent with expected use and prior patterns. Tide's monitoring was proportionate and reasonable. Once notified, Tide acted appropriately in attempting recovery and following standard practice by returning recovered funds to the sending PSP rather than directly to the individual. The return of £44.16 to P's account listed on the indemnity was not unreasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website