Not upheld: Fraud reimbursement (APP scams) complaint against J.P. Morgan Europe Limited (trading as Chase)

Decision detail

Summary

Mr M complained that Chase refused to refund payments he made to what he believed was an online investment scam after being contacted on social media. He provided screenshots of communication with the person offering the investment opportunity, but much of the subsequent communication was no longer available. The ombudsman found that despite Mr M's claims and the fact that another bank had agreed to refund some of his losses, there was insufficient evidence to establish that a scam had occurred or that Mr M had suffered a loss. The complaint was not upheld as the ombudsman could not safely conclude that the payments were made as a result of a scam.

The Ombudsman's reasoning

The ombudsman determined that before considering whether a bank adequately protected its customer, the service must first be satisfied that a scam occurred and a loss was suffered. Despite requesting evidence and giving Mr M sufficient opportunity to provide it, the ombudsman concluded there was insufficient evidence to clearly establish that the payments were made as a result of a scam or that Mr M suffered a loss. The screenshots provided did not clearly demonstrate that the payments were related to the investment or that the investment was illegitimate. The lack of complete communication records meant the ombudsman could not determine with certainty why the payments were made or whether the recipient used the funds as intended. The fact that another bank agreed to refund Mr M was not determinative, as each complaint is assessed on its individual merits.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website