Not upheld: Fraud reimbursement (APP scams) complaint against MONZO BANK LIMITED

Decision detail

Summary

Mr A complained that Monzo refused to refund a disputed transaction of approximately £1,100 made from his business account in September 2025, which he claimed he did not authorize. He also objected to Monzo's closure of both his business and personal accounts. The ombudsman examined evidence showing the transaction was made using an Apple Pay token that had been set up on the day the account opened and used for other undisputed transactions, with no evidence of unauthorized device access or malware. Finding that Mr A most likely authorized the transaction, the ombudsman did not require a refund. The ombudsman also confirmed that Monzo acted in line with its terms and conditions by providing two months' notice before closing the accounts.

The Ombudsman's reasoning

The ombudsman applied the Payment Services Regulations 2017, which generally hold the customer responsible for authorized transactions. The key finding was that the Apple Pay token used for the disputed transaction was the same token set up on account opening and used for undisputed transactions, with no evidence of the card being added to other devices. Combined with Mr A's device security measures and lack of evidence supporting his remote access/malware theory, the ombudsman concluded it was more likely than not that Mr A authorized the transaction. Regarding account closure, Monzo complied with its terms and conditions by providing two months' notice and was not obliged to provide a reason.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website