Not upheld: Fraud reimbursement (APP scams) complaint against TSB Bank plc

Decision detail

Summary

Ms J lost money in an investment scam after being contacted by a fraudster claiming to offer 130% returns. She made multiple cash withdrawals from her TSB account and other banks, giving the cash to individuals following the scammer's instructions. When she realised it was a scam, she claimed TSB should refund her losses. TSB declined, noting the withdrawals were made with her card and PIN. The ombudsman found the withdrawals were authorised by Ms J and that TSB's interventions on larger in-branch withdrawals were appropriate and proportionate, as the explanations provided were plausible and Ms J had been coached not to disclose the true reason. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the starting position that TSB must process authorised payments in accordance with Payment Services Regulations. As Ms J made all withdrawals using her own card and PIN, which she did not share, the transactions were authorised. While TSB must sometimes look beyond face value authorisation, the ombudsman found TSB's interventions on the two larger in-branch withdrawals were appropriate and proportionate. The explanations Ms J provided (New Year celebrations and shopping) were plausible, and even if TSB had questioned further, Ms J would not have disclosed the true reason as she had been coached by the scammer. The pattern of 12 withdrawals over four weeks was not unusual enough to warrant intervention. Ms J's vulnerability was not known to TSB, so they could not be expected to take additional steps based on it.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website