Not upheld: Fraud reimbursement (APP scams) complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr W lost approximately £21,000 to an investment scam in 2025 by making multiple payments to crypto providers and an EMI account (R) to purchase cryptocurrency for a fraudulent investment platform. He complained to HSBC, claiming they failed to protect him from the scam. While the ombudsman found that HSBC should have carried out additional checks and provided a tailored warning before processing a £1,500 payment on 2 October 2025 (which was the third rapid payment totalling £3,500), the complaint was not upheld. The ombudsman concluded that based on Mr W's interactions with R—where he provided inaccurate responses and ignored specific warnings about crypto scams—he would have responded similarly to HSBC's intervention, meaning a proportionate intervention would not have prevented the loss. The ombudsman also found HSBC could not have recovered the funds after the scam was discovered.

The Ombudsman's reasoning

While HSBC should have carried out additional checks and provided a written warning before processing the £1,500 payment on 2 October 2025 due to the heightened fraud risk, the ombudsman found that causation was not established. Based on Mr W's interactions with R, where he provided inaccurate information and ignored specific, tailored warnings about crypto investment scams, the ombudsman concluded that Mr W would have responded similarly to HSBC's intervention. Therefore, a proportionate intervention by HSBC would not have uncovered the scam or prevented the loss. The ombudsman also found HSBC could not have recovered the funds post-scam discovery.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website