Not upheld: authorised push payment (APP) scam - fraud prevention and recovery complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr V, on behalf of S, complained that Barclays Bank UK PLC failed to prevent losses from an email intercept scam involving three international payments totalling £3,440.11 to a fraudulent supplier account. Mr V argued that Barclays should have questioned the change in the recipient account location, as S had previously sent money to the same supplier in a different country in October 2024. The ombudsman found that the payments did not display sufficient fraud indicators to warrant intervention, noting they were not high-value, were spaced one month apart, and there were plausible reasons for a supplier to have accounts in different countries. The ombudsman also found Barclays conducted appropriate recovery attempts on a best endeavours basis. The complaint was not upheld and no refund was ordered.

The Ombudsman's reasoning

Banks must balance identifying potentially fraudulent payments with minimising disruption to legitimate transactions. The ombudsman found the three payments were not high-value for the account, were spaced one month apart with no fraud pattern evident, and there were plausible reasons a supplier might legitimately have accounts in different countries. The change in account location, combined with the fact that the October 2024 payment came from a different account of S's, did not constitute a sufficient red flag for intervention. International payments are not subject to Confirmation of Payee requirements or Payment Service Regulator scam reimbursement rules. Barclays' recovery attempts were conducted appropriately on a best endeavours basis.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website