Not upheld: Fraud reimbursement (APP scams) complaint against AMERICAN EXPRESS SERVICES EUROPE LIMITED

Decision detail

Summary

Mr A complained that Amex allowed fraudulent transactions to debit his account on 30 December 2025 without sufficient fraud prevention measures, despite multiple elevated risk indicators such as overseas merchants, high-value amounts, and new merchants. Although Amex refunded the transactions on 1 January 2026, Mr A sought an explanation of how the transactions were assessed and approved, plus compensation of £150-£250 for distress and inconvenience. The ombudsman found that Amex's fraud prevention systems operated as intended and that the transactions were consistent with Mr A's established 2025 account behaviour, which included regular travel spending, three-figure transactions, and overseas purchases. The ombudsman concluded that Amex provided a reasonable explanation and dealt with the fraud claim fairly and promptly, so the complaint was not upheld and no compensation was ordered.

The Ombudsman's reasoning

The ombudsman found that Amex's fraud prevention systems operated as intended and that the specific transactions, while appearing suspicious in isolation (overseas, new merchants, high-value), were consistent with Mr A's established account behaviour in 2025, which included regular travel spending, three-figure transactions, and spending abroad. The ombudsman acknowledged that fraud prevention systems use dynamic criteria and it is not always possible to isolate specific reasons why particular transactions may or may not be subject to security checks. The ombudsman concluded that Amex provided a reasonable explanation in the circumstances and that the inconvenience caused was largely attributable to the fraudster rather than any failing by Amex. Amex promptly refunded the transactions and restored Mr A's account to its proper position.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website