Not upheld: Fraud reimbursement (APP scams) complaint against HSBC UK Bank Plc trading as M&S Bank

Decision detail

Summary

Miss H fell victim to a cryptocurrency investment scam after joining a group chat and responding to a fraudulent investment opportunity. She made two authorised credit card payments totalling £8,000 in March 2025 and subsequently provided her card details to the scammer, resulting in additional unauthorised transactions in June-July 2025. M&S Bank refunded 50% of the March payments and all unauthorised June-July payments, amended her credit file, and refunded associated interest and charges. Miss H complained that M&S Bank should have prevented the scam through intervention and should refund her remaining loss. The ombudsman found M&S Bank not at fault because evidence from other firms showed Miss H consistently provided cover stories when questioned about scam payments and persisted despite warnings, making intervention unlikely to have succeeded.

The Ombudsman's reasoning

The ombudsman found that while Miss H authorised the March 2025 payments and they looked unusual, proportionate intervention by M&S Bank would likely not have prevented the loss because Miss H consistently provided cover stories when questioned by other firms and was persistent in proceeding despite warnings. The scammer had coached her on what to say if questioned. Although Miss H was vulnerable and manipulated, M&S Bank cannot be held at fault for not preventing payments when Miss H would likely have deceived any intervention. The June-July unauthorised payments were appropriately refunded by M&S Bank. The service delay was justified given the complexity of the scam involving multiple firms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website