Not upheld: scam and fraud - impersonation scam with shared liability complaint against Monzo Bank Limited

Decision detail

Summary

Mr A fell victim to an impersonation scam where he was contacted about a car insurance refund and tricked into making four international payments totalling over £2,700 in administrative fees. Monzo accepted it should have taken additional steps to prevent the fraud but refunded only 50% of the loss, arguing Mr A should share responsibility. The Ombudsman upheld Monzo's decision, finding that clear red flags existed (unsolicited contact, excessive fees relative to the quoted refund, payments to private individuals in foreign currency) that Mr A should have questioned, and that had he done so, the scam would likely have been discovered. The complaint was not upheld.

The Ombudsman's reasoning

The Ombudsman accepted that Monzo should have taken additional steps to prevent the fraud, but found that Mr A should bear some responsibility through contributory negligence. Clear red flags existed: unsolicited contact, being asked to pay over 50% of the quoted refund as admin fees, and making payments to private individuals in foreign currency when expecting a refund from a UK-based business. Had Mr A questioned the caller and conducted checks, the scam would likely have been discovered. Therefore, a 50% reduction in compensation was fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website