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

Decision detail

Summary

Mr A complained that Monzo refused to refund approximately £1,100 in disputed transactions made to a gambling merchant via Apple Pay on his personal account between January and September 2025, and that Monzo improperly closed his accounts. The ombudsman found that the Apple Pay token used for the disputed transactions was the same token set up when the account opened and used for undisputed transactions, indicating the transactions originated from Mr A's device. Mr A's claims of remote access were unsupported by evidence of malware or technical compromise. The ombudsman concluded Mr A most likely authorized the transactions and that Monzo properly closed the accounts in accordance with its terms and conditions. The complaint was not upheld.

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 disputed transactions was the same token used for undisputed transactions and was set up on the day the account opened, indicating the transactions were made from Mr A's device. Mr A provided no persuasive evidence of how someone else could have accessed his device, and his suggestion of remote access was unsupported by evidence of malware or other technical compromise. The ombudsman concluded it was more likely than not that Mr A authorized the transactions. Regarding account closure, Monzo complied with its contractual obligations by providing two months' notice and was not obliged to provide a reason for closure.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website