Not upheld: fraud marker lodgement and account closure complaint against Monzo Bank Limited

Decision detail

Summary

Mr O complained that Monzo improperly lodged a fraud marker on CIFAS after receiving a fraud report from another bank regarding £2,500 sent to his account. The funds were quickly transferred to a sports betting company, and Mr O initially provided a vague explanation that the money was from a friend. Monzo lodged the CIFAS marker on 9 February 2026 but removed it on 19 February after Mr O provided additional evidence explaining the betting activity. The ombudsman found Monzo acted properly in both lodging and removing the marker, and rejected Mr O's claim for compensation due to the short duration the marker remained on record.

The Ombudsman's reasoning

The ombudsman found that Monzo had reasonable grounds to lodge the CIFAS marker based on the fraud notification and account activity patterns. Although Mr O did respond to Monzo's enquiry, his initial explanation was vague and Monzo would likely have taken the same action even with that response. Critically, Monzo properly removed the marker within 10 days of receiving fuller evidence from Mr O, complying with CIFAS requirements. The short duration of the marker's presence (9-19 February) meant no significant reputational damage could be established, and therefore no compensation was warranted.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website