Not upheld: Cifas marker application; suspected fraud/misuse of facility complaint against Santander UK Plc

Decision detail

Summary

Mr I complained that Santander unfairly applied a Cifas marker (Misuse of Facility) against his name after he received fraudulent payments totalling £7,185 into his account. Santander investigated after receiving fraud reports and questioned Mr I about the payments. Mr I provided inconsistent explanations, initially claiming the money was borrowed from a family member and later saying it was from persons known to him, but could not substantiate his claims with evidence. The ombudsman found that Santander had reasonable grounds to believe fraud occurred and that Mr I likely knew the payments were or might be fraudulent based on his inconsistent statements and lack of supporting evidence. The complaint was not upheld and the Cifas marker was found to have been fairly applied.

The Ombudsman's reasoning

For a Cifas marker to be fairly applied, the firm must have reasonable grounds to believe fraud or financial crime occurred, with clear, relevant and rigorous evidence. The ombudsman found the disputed payments were likely fraudulent based on Santander's fraud reports. Critically, Mr I's explanations were inconsistent and deliberately vague across multiple conversations, he could not substantiate his claims with evidence of conversations, and his statements did not align with information in the fraud reports. The ombudsman concluded it was more likely than not that Mr I knew the payments were or might be fraudulent, justifying the marker application.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website