Partially upheld: scam / fraud - failure to prevent payment to scammer through inadequate questioning and intervention complaint against Metro Bank PLC

Decision detail

Summary

Mr G fell victim to a scam where he was instructed to open a Metro Bank account and send £4,305 internationally as a bond fee for the purchase of his shares. Metro processed the payment in branch without questioning Mr G about its purpose or circumstances, despite red flags including the international nature, newly opened account, and unsolicited contact. The ombudsman found Metro should have intervened to prevent the scam but also found Mr G partially responsible for not independently verifying the offer. Metro was ordered to refund 50% of the loss (£2,152.50) plus interest, reflecting shared fault.

The Ombudsman's reasoning

Metro had an opportunity to prevent the scam through proportionate intervention at the point of payment. The payment exhibited multiple red flags: international transfer, newly opened account, unsolicited contact, instruction to open new account, and destination country different from scammer's base. Metro should have questioned Mr G about the payment purpose and circumstances, which would likely have uncovered the scam. However, Mr G bore some responsibility for not independently verifying the share value or seeking financial advice, which would have revealed the offer was too good to be true. A fair allocation of fault is 50% to each party.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website