Not upheld: Cifas fraud marker registration; alleged irresponsible account management complaint against TSB Bank plc

Decision detail

Summary

Ms F complained that TSB unfairly registered a Cifas fraud marker after her account received £980 in fraudulent payments from individual K, which she claimed were payment for designer clothing her brother had sold. Ms F provided screenshots and photographs as evidence but could not produce invoices or business records. The ombudsman found Ms F's explanation implausible due to inconsistencies, lack of corroborating evidence, and the fraud report indicating K was not purchasing clothing. Although Ms F reported the matter to police and Action Fraud, the ombudsman concluded she was a willing participant in receiving and moving fraudulent funds, not an innocent victim, and therefore TSB was justified in registering the marker.

The Ombudsman's reasoning

The ombudsman applied the Cifas standard requiring reasonable grounds to believe fraud occurred and clear, rigorous evidence of deliberate complicity. While fraudulent funds were confirmed to have entered Ms F's account, the ombudsman found Ms F's explanation implausible due to: lack of invoices or purchase records for items allegedly sold; inconsistencies between Ms F's account transactions and her explanation; undated and incomplete screenshots that could not be verified; the fraud report indicating K was not purchasing clothing; and the absence of corroborating evidence such as business records or platform reports. The ombudsman concluded Ms F was a willing participant in receiving and moving fraudulent funds, not an innocent party.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website