Not upheld: scam/fraud - failure to prevent cryptocurrency investment scam complaint against Santander UK Plc

Decision detail

Summary

Mr W fell victim to a romance scam involving a fake cryptocurrency investment scheme orchestrated by an individual 'X' who posed as an experienced trader on social media. Over a three-month period, Mr W made 17 debit card payments totalling £28,523.54 to legitimate cryptocurrency exchanges based on X's guidance, expecting 10-15% returns. When Mr W could not withdraw funds, he realised the scam. Santander intervened with a call before one payment, but Mr W provided dishonest information, claiming a school friend (rather than X) had introduced him to cryptocurrency. The ombudsman found that while Santander should have intervened further, Mr W's deliberate deception and deep trust in the scammer meant further intervention would likely not have prevented the loss, and chargebacks would have no prospect of success since payments went to legitimate exchanges rather than directly to the fraudster.

The Ombudsman's reasoning

While Santander should have intervened further when payments of £3,000 or more were made, the ombudsman found that Mr W provided dishonest information during the intervention call, claiming a school friend introduced him to cryptocurrency rather than revealing the true source (X). The ombudsman concluded that Mr W's willingness to provide false information to Santander, combined with his deep trust in X and willingness to follow her guidance without question, meant that even further intervention would likely not have prevented the scam. Additionally, chargebacks would have no prospect of success because the payments were made to legitimate cryptocurrency exchanges rather than directly to the scammer, requiring further steps for funds to reach the fraudster.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website