Not upheld: Fraud reimbursement (APP scams) complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr K complained that Barclays should refund approximately £2,400 he lost after making debit card payments to a trading platform that he claimed was a scam. He alleged the platform's account manager misrepresented risks and blocked his withdrawals. Barclays attempted chargebacks which failed after the platform provided evidence that Mr K's funds were deposited to his account and lost through unsuccessful trades. The ombudsman found insufficient evidence of a scam, noting the platform provided evidence of legitimate deposit and trading activity rather than fraud. Even if a scam were established, Mr K authorised the payments and Barclays had no obligation to intervene based on the unremarkable transaction pattern. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found insufficient evidence to establish that a scam occurred, as there was no evidence of intentional fraud, fake cloning, or misappropriation of funds. The funds were demonstrably deposited and traded, with losses resulting from unsuccessful trades rather than fraud. Even if a scam were established, Mr K authorised the payments under Payment Services Regulations, making him liable in the first instance. Barclays had no obligation to intervene as the payments were individually unremarkable, spread over time, and made from sufficient balance without any indicators of fraud or vulnerability. Barclays appropriately attempted chargebacks but the platform provided sufficient defence. No further recovery mechanisms were available.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website