Not upheld: scam - safe account fraud / unauthorised payment complaint against Starling Bank Limited

Decision detail

Summary

Mr S fell victim to a safe account scam in January 2026 after receiving a fraudulent text message and calling a scammer posing as a Starling fraud investigator. He authorised a £7,800 payment to money transfer provider L following the scammer's instructions. Upon discovering the scam, Mr S reported it to Starling and requested a refund, which was rejected. The ombudsman found that the payment was authorised by Mr S and did not present heightened fraud risk warranting additional intervention by Starling beyond the written warning provided. The complaint was not upheld as Starling was not found to be responsible for the loss.

The Ombudsman's reasoning

The ombudsman found that Mr S authorised the £7,800 payment, making him presumed liable in the first instance under Payment Services Regulations. The payment to a legitimate money transfer provider did not present a heightened fraud risk warranting additional checks, as Mr S's prior account activity included similar and greater transactions, and payments to different payees were common. The written warning provided by Starling was sufficient given the payment did not stand out as unusual. Recovery through chargeback was not viable as the money transfer provider would have a valid defence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website