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

Decision detail

Summary

Mr J purchased approximately 20 bottles of perfume for £3,240 from an online seller in December 2025, making two payments from his Santander account. After receiving the items, Mr J discovered they were counterfeit when the fragrance house producer confirmed the bottles had been refilled. The seller refused to refund Mr J and blocked him. Santander declined Mr J's fraud claim, classifying it as a buyer/seller dispute. The ombudsman upheld Santander's decision, finding insufficient evidence that the seller intended to defraud Mr J from the outset. Although Mr J received defective goods, the seller's positive reviews and previous successful transactions meant the transaction constituted a private civil dispute rather than an APP scam covered by the Reimbursement Rules.

The Ombudsman's reasoning

The ombudsman applied the civil standard of proof (balance of probabilities) to assess whether fraud occurred. The Reimbursement Rules define an APP scam as involving criminal deception where the recipient is not who the consumer intended to pay or the payment is not for the intended purpose. The ombudsman found insufficient evidence that the seller intended to defraud Mr J from the outset. While Mr J received counterfeit goods, this does not automatically demonstrate fraudulent intent, particularly given the seller's positive history and previous successful transactions. The ombudsman concluded this was a private civil dispute regarding defective goods rather than an APP scam.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website