Not upheld: Fraud reimbursement (APP scams) complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss B complained that HSBC held her responsible for approximately £4,324 in disputed transactions made after her phone was stolen on 08 April 2025. She claimed a third party accessed her account without authorization. HSBC argued the payments were authorized, citing technical evidence of Face ID access and the use of Miss B's unchanged PIN. The ombudsman found that the five-day delay before payments were made (atypical of fraud), the use of Face ID authentication, and the unchanged PIN all indicated Miss B more likely than not authorized the transactions or permitted access. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the balance of probabilities standard to determine whether Miss B authorized the transactions. The key reasoning was that the timing and nature of the transactions were atypical of unauthorized fraud - a fraudster would normally attempt to withdraw funds immediately upon gaining access, not wait five days. Additionally, the technical evidence showed Face ID was used to access the banking app (which would require Miss B's biometric data), and the unchanged six-digit PIN was used to verify payments, suggesting Miss B's involvement. The evidence from the linked complaint further supported that Miss B likely authorized or permitted access to her account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website