Not upheld: CIFAS fraud prevention marker registration and account closure following money mule scam complaint against Nationwide Building Society

Decision detail

Summary

Mr H allowed his ex-partner to use his bank account to receive £900 in May 2024, believing it was for legitimate purposes related to a family bereavement. Nationwide identified this as a money mule scam and, after determining Mr H was an unwitting victim, advised him to close the account and open a new one. Mr H did not follow this advice. In July 2024, further suspicious transactions occurred on the account, suggesting his ex-partner still had access. Nationwide closed the account and registered a CIFAS 'misuse of facility' marker. Mr H complained that he was the victim and should not have the marker registered. The ombudsman found that while Mr H was initially unwitting, his failure to take precautions after being warned meant he became a witting party to continued misuse, justifying both the CIFAS marker and account closure.

The Ombudsman's reasoning

The ombudsman found that while Mr H was initially an unwitting money mule victim in May 2024, Nationwide properly educated him about the scam and advised him to close the account. However, Mr H failed to follow this advice despite having the opportunity to do so. The subsequent transactions in July 2024 indicated Mr H's ex-partner still had access to the account, suggesting Mr H either knowingly allowed continued access or failed to take reasonable precautions after being warned. The ombudsman concluded that by continuing to allow the account to be used for illegitimate purposes, Mr H became a witting party. The CIFAS marker was therefore justified as Nationwide had reasonable grounds to believe financial crime had occurred, supported by clear evidence. The account closure was within Nationwide's contractual rights.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website