Not upheld: scam - investment fraud; chargeback claim handling; failure to intervene complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Mr C complained that NatWest unfairly refused to refund money he lost in an investment scam involving an advertising company. He made three payments totalling £12,197.06 and was initially able to withdraw some returns, but subsequently could not access his funds or contact the company. Mr C requested NatWest raise chargeback claims, but NatWest declined due to insufficient evidence. The ombudsman found insufficient evidence to establish a scam had occurred, noting Mr C provided very limited supporting documentation and detail about what was agreed. Even if a scam had occurred, the ombudsman found the payments would not have appeared sufficiently suspicious to trigger NatWest's intervention, and NatWest's decision not to raise chargebacks was reasonable. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that the primary issue was whether sufficient evidence existed to establish Mr C was the victim of a scam. Finding insufficient evidence of a scam, the ombudsman concluded that complaints about NatWest's failure to protect him or refund losses could not succeed. The ombudsman noted Mr C provided very limited detail about what was agreed, how he found the opportunity, or supporting documentation such as emails or messages. While some online information suggested potential fraud, this was insufficient to establish a scam had occurred. The ombudsman also found that even if a scam had occurred, the payment pattern would not have appeared sufficiently suspicious to trigger NatWest's intervention, as Mr C made other large payments around the same time. Finally, the ombudsman found NatWest's decision not to raise chargeback claims was reasonable given the lack of evidence about what had been agreed between the parties.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website