Not upheld: scam and fraud - alleged unauthorized loss of funds complaint against TSB Bank plc

Decision detail

Summary

Mr H complained that TSB Bank failed to refund approximately £155,742 he transferred to an online trading platform between 2016 and 2023 after being cold-called with promises of profits from gold and Bitcoin trading. He claimed he had been scammed and lost most of the funds, though he managed to withdraw approximately £73,416 before account restrictions were imposed. The ombudsman reviewed the evidence including alleged scammer messages, online reviews, and regulatory information, but found insufficient proof that a scam had occurred. The ombudsman concluded the platform appeared legitimately regulated in Europe and that the issues Mr H experienced were more likely a commercial dispute than fraud, therefore declining to hold TSB responsible for the loss.

The Ombudsman's reasoning

The ombudsman applied the balance of probabilities test given incomplete and inconclusive evidence. The key finding was that Mr H had authorised the payments and there was insufficient evidence that the online trading platform was involved in a fraudulent scam. The ombudsman noted that the platform appears to be legitimately regulated in Europe and that the FCA warning Mr H referenced appeared to relate to a different website. The problems Mr H experienced with communication and fund retrieval were not sufficiently linked to third-party fraud. The ombudsman concluded this was more likely a commercial dispute between Mr H and a regulated trading platform rather than a scam, and therefore TSB could not be held responsible.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website