Not upheld: account security and impersonation fraud complaint against M & G Securities Limited

Decision detail

Summary

Mr T complained that M&G Securities allowed an impersonator to change his account details on 8 July 2025 by successfully answering security questions. Mr T discovered the unauthorized changes in October 2025 and complained that M&G's security procedures were insufficient. M&G apologized, rectified the account, and implemented additional security measures, but no financial loss occurred. The ombudsman did not uphold the complaint, finding that M&G followed standard procedures correctly and the impersonator provided correct answers to all security questions without raising suspicion, therefore M&G acted fairly and no error warranting compensation occurred.

The Ombudsman's reasoning

The ombudsman found that M&G followed its standard security procedures correctly and the impersonator successfully answered all security questions without raising suspicion. Since M&G acted fairly in following proper procedures, made no error, and no financial loss occurred, compensation was not warranted. The ombudsman noted that while the incident was distressing, M&G responded promptly and appropriately once made aware of the fraudulent activity.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website