Not upheld: unauthorized transaction / fraud claim complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss C complained that HSBC refused to refund a £1,718 transaction she claimed she did not authorize, which occurred on 6 December 2025 while she was abroad. HSBC determined the transaction was made using Miss C's genuine card and PIN and refused to refund it. The ombudsman accepted Miss C was abroad but found that because the genuine card and PIN were used, the card must have been in the UK, and rejected the possibility of chip cloning. The ombudsman concluded it was more likely than not that Miss C authorized the transaction or was involved in some way, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman accepted that Miss C was abroad based on flight evidence, but found that because the genuine card and PIN were used to make the transaction, the card must have been in the UK rather than with Miss C abroad. The ombudsman rejected the possibility of chip cloning due to lack of prior fraudulent transactions and significant protections against such technology. Given that the genuine card and PIN were used, and Miss C adamantly denied giving these to anyone else, the ombudsman concluded it was more likely than not that Miss C authorized the transaction or was involved in some way, even if she was reluctant to disclose full details.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website