Not upheld: fraud marker loading / account closure complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss S complained that HSBC unfairly loaded an adverse fraud marker against her on the Cifas database after closing her accounts. HSBC had concluded Miss S was raising fraudulent disputes and immediately utilising temporary refund credits, resulting in account deficits. The ombudsman reviewed the evidence including 125 disputes raised across three accounts, multiple refuted claims, CCTV footage showing Miss S received goods she disputed, and a pattern of timing disputes with account depletion. Finding that HSBC met the Cifas standard of proof on the balance of probabilities that Miss S was likely a witting participant in account misuse, the ombudsman did not uphold the complaint and declined to order removal of the marker.

The Ombudsman's reasoning

The ombudsman applied the Cifas standard requiring reasonable grounds to believe fraud was committed and clear, relevant, rigorous evidence that the customer was likely a witting participant. While 125 disputes alone raised concerns, the combination of refuted claims, CCTV evidence of receipt of goods, and the pattern of timing disputes with account depletion and immediately using credits demonstrated Miss S was more likely than not a witting participant in misusing her account. The ombudsman found HSBC met the required burden of proof on the balance of probabilities, which is lower than the criminal standard.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website