Not upheld: Fraud reimbursement (APP scams) complaint against Nationwide Building Society

Decision detail

Summary

Mr H complained that Nationwide should reimburse approximately £24,000 he lost after falling victim to an investment scam. He made 17 cash withdrawals between October 2024 and June 2025, claiming he handed the cash to someone (M) who promised to invest it through a mentor. M stopped communicating and Mr H received no returns. The ombudsman found insufficient evidence to establish that the cash was actually passed to M or how the funds were used, noting inconsistencies between discussed and withdrawn amounts and a lack of clear links in chat messages between specific withdrawals and the scam. The complaint was not upheld because without clearly establishing the loss and causation, the ombudsman could not fairly hold Nationwide responsible.

The Ombudsman's reasoning

The ombudsman found that while Mr H claimed all withdrawn cash was passed to M and lost to a scam, there was insufficient evidence to confirm the amounts actually handed to M. Except for the first £1,600 withdrawal, there were no clear links in the chat messages between specific withdrawal amounts and the scam. There were also inconsistencies between amounts discussed and amounts withdrawn. Since the payments were made in cash, the funds could not be traced. Without clearly establishing Mr H's loss and how his funds were used, the ombudsman could not fairly hold Nationwide responsible. The ombudsman noted that had Mr H made transfers instead of cash withdrawals, the amounts and payees would have been clear and the position would likely be different.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website