Not upheld: scam refund claim complaint against Wise (trading as Wise payments Limited)

Decision detail

Summary

Mr M complained that Wise refused to refund money he claimed he lost to a scam investment. He alleged he had sent a payment to what he believed was a legitimate investment but later realized it was fraudulent. Wise investigated but did not uphold the complaint. The ombudsman found that Mr M had not sufficiently demonstrated he was a victim of a scam, as he provided no evidence of contact with a scammer, no evidence of being convinced to send money, and no evidence of actual loss. The ombudsman also found that even if a scam had occurred, the payment circumstances were not unusual enough to trigger Wise's fraud prevention systems, and international payments are not covered under the CRM scheme. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Mr M had not sufficiently demonstrated he was a victim of a scam because he provided no evidence of contact with a scammer, no evidence of being convinced to send money by a scammer, and no evidence showing where the money ended up or that he suffered a loss. Even if a scam had occurred, the payment value and circumstances (a one-off international payment from a newly opened account) were not unusual enough to trigger Wise's fraud prevention systems. Additionally, as the payment went to an international bank account, it would not be covered under the CRM scheme.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website