Not upheld: disputed transactions / scam liability complaint against Capital One (Europe) plc

Decision detail

Summary

Miss M was scammed into purchasing £480 worth of gift cards after receiving fraudulent communication she believed was from her senior manager. She disputed the transactions with Capital One, which declined to refund them. The ombudsman found that although Miss M was a genuine victim of a scam, she had authorised the transactions herself using her genuine card and PIN, making her liable under the Payment Services Regulations 2017. The transactions were not sufficiently unusual for Capital One to have intervened before processing. The ombudsman also found that Capital One's communication with Miss M, including questions about potential health conditions, was appropriately handled. The complaint was not upheld.

The Ombudsman's reasoning

Under the Payment Services Regulations 2017 and Consumer Credit Act 1974, Capital One is entitled to hold Miss M liable for authorised transactions. Although Miss M was the victim of a scam, she authorised the payments herself using her genuine card and PIN. The transactions were not so unusual for her account that Capital One should have intervened before processing them. Regarding Miss M's concerns about how Capital One communicated with her, the ombudsman found that Capital One's questioning about potential health conditions or support needs was appropriately framed and did not warrant compensatory payment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website