Not upheld: Fraud reimbursement (APP scams) complaint against Barclays Bank UK PLC

Decision detail

Summary

Mrs J lost £1,207.51 to a scam where fraudsters diverted her flight ticket payment to themselves, who then used it to purchase tickets from a legitimate travel agency. She complained to Barclays, which declined to refund her, raised an unsuccessful chargeback, and paid £150 compensation. The ombudsman found Barclays acted fairly and reasonably, as the payment showed no unusual characteristics that should have triggered fraud prevention intervention, and the chargeback was properly defended by the legitimate merchant who had provided the service.

The Ombudsman's reasoning

While payment service providers should be alert to fraud, the ombudsman found nothing unusual about this particular transaction that should have triggered intervention. The payment amount was not remarkable given Mrs J's transaction history, and debit card payments were common on her account. The chargeback was properly defended by the legitimate merchant who had provided the service (albeit to fraudsters), leaving no viable recovery route.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website