Not upheld: Fraud reimbursement (APP scams) complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Ms R fell victim to an investment scam after responding to a social media job advertisement. She made 13 payments totalling £172,420 to accounts in her own name and to a cryptocurrency exchange between June and July 2025. Halifax intervened 11 times during this period, but Ms R provided false information stating the payments were to her own account for legitimate cryptocurrency investment. Ms R also gave false information to other financial providers and took a loan under false pretences. The ombudsman found Halifax not responsible as Ms R authorised the payments and deliberately misled the bank to prevent intervention, making it impossible for Halifax to detect the scam.

The Ombudsman's reasoning

Although Ms R authorised the payments and banks have limited recovery options for transfers, Halifax did have a duty to protect against financial loss from fraud. Halifax intervened 11 times and provided warnings based on the information Ms R gave. However, Ms R deliberately provided false information to Halifax and other providers to prevent intervention, stating the payments were to her own account and for legitimate cryptocurrency investment. The scammer coached Ms R on what to say. Even if Halifax should have done more, Ms R would not have provided honest information, making it impossible for Halifax to uncover the scam. Ms R's claim of vulnerability at the time is not supported by sufficient evidence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website