Not upheld: fraud and scam - investment scam complaint against Barclays Bank UK PLC

Decision detail

Summary

Mrs P complained that Barclays Bank UK PLC should refund £30,000 she lost when she invested with a company that subsequently entered liquidation and proved to be a scam. She had been introduced to the investment company by a friend, met the co-founder, and reviewed professional-looking contracts before making the payment in March 2019. Barclays investigated but declined to refund, arguing that reasonable checks would not have uncovered the scam. The ombudsman upheld Barclays' position, finding that the investment appeared legitimate based on the company's government registration, filed accounts, professional documentation, and the personal introduction, and that nothing Barclays would reasonably have done would have prevented Mrs P's loss.

The Ombudsman's reasoning

The ombudsman acknowledged that banks should protect customers from fraud through monitoring and checks, but found that even if Barclays had carried out reasonable checks on this £30,000 payment, it would not have uncovered the scam. The investment appeared legitimate: the company was registered, had filed accounts, had professional documentation, Mrs P had met the co-founder in person, and she had been introduced by a trusted friend who had been investing for 18 months. While the promised returns were high, this alone would not have raised significant concerns given the other legitimating factors. Therefore, the ombudsman concluded that nothing Barclays would reasonably have done would have prevented the loss.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website