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

Decision detail

Summary

Mr P lost £16,270 to an employment scam through seven authorised transfers from his HSBC account between November and December 2024. Although HSBC's fraud detection systems were triggered on some payments and the bank intervened, Mr P provided a cover story about paying his mother's medical bills, coached by the scammers. The ombudsman found that while HSBC could have done more to monitor and intervene, it could not have prevented the loss because the transactions did not necessarily indicate an employment scam and Mr P would have persisted with alternative explanations or payment methods. The complaint was not upheld.

The Ombudsman's reasoning

Although HSBC could have done more to protect Mr P through additional monitoring and intervention, the ombudsman concluded that HSBC could not have prevented the financial loss. The payments could indicate fraud but did not necessarily point to an employment scam. Mr P confidently provided a cover story that would likely have persisted even with further questioning. Mr P was determined to make the scam payments and would have found alternative means if HSBC had declined the payments. Recovery of funds was not feasible given the time elapsed and nature of the payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website