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

Decision detail

Summary

Miss A lost £13,700 to an investment scam between August and November 2024, making international payments to accounts in Italy and Spain based on an opportunity introduced by an acquaintance. HSBC reimbursed 50% of the loss (£6,850) acknowledging it could have done more to protect her. The ombudsman upheld this outcome, finding that while HSBC had a duty to protect Miss A, she also failed to act reasonably by ignoring multiple red flags including prior scam experience, WhatsApp-only communication, instructions to lie to her bank, and her own concerns expressed in October 2024 yet continuing payments in November. Although Miss A was vulnerable due to health issues and personal challenges, the ombudsman determined these did not impair her ability to identify warning signs, making equal responsibility for losses fair and reasonable.

The Ombudsman's reasoning

While HSBC had a duty to protect Miss A and made errors, Miss A also had a responsibility to take reasonable care to mitigate losses. The ombudsman found Miss A failed to act reasonably due to multiple red flags: prior scam experience warranting caution, unusual WhatsApp-only communication, instruction to lie to her bank, payments to unrelated accounts in different countries, unrealistic investment returns, and critically, her failure to act on her own concerns expressed in October 2024 despite continuing to make payments in November 2024. Although Miss A was vulnerable due to health issues and personal challenges, the ombudsman found these circumstances did not impair her ability to identify warning signs. Therefore, equal responsibility for losses was appropriate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website