Upheld: Fraud reimbursement (APP scams) complaint against Santander UK Plc
Financial Ombudsman decision DRN-6458671 of 2026-06-26T00:00:00+00:00. Fraud reimbursement (APP scams) complaint against Santander UK Plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6458671 |
|---|---|
| Decision date | 2026-06-26T00:00:00+00:00 |
| Firm | Santander UK Plc |
| Product | Credit card |
| Claim type | Fraud reimbursement (APP scams) |
| Outcome | Upheld |
| Remedy | Santander UK Plc to pay Mrs H: (1) £1,410.10 refund; (2) 8% simple interest per year on £1,410.10 from date of payment to date of settlement (less any tax lawfully deductible). The £50 compensation already paid for chargeback handling error is accepted as fair. |
Summary
Mrs H lost £1,660.05 to a travel scam, making two payments for flights that were never provided. Santander initially refunded both payments via chargeback but re-debited £1,410.10 when the merchant successfully challenged the chargeback by providing evidence that tickets were issued. The ombudsman upheld the complaint, requiring Santander to refund the £1,410.10 plus 8% simple interest, accepting that Santander should have prevented the scam through better fraud warnings. However, the ombudsman found the chargeback was properly declined on technical grounds and attributed most of Mrs H's distress to the fraudsters rather than Santander's actions, deeming the £50 compensation for chargeback handling errors to be fair.
The Ombudsman's reasoning
The ombudsman accepted that Santander ought to have prevented the scam and therefore should provide a full refund on the disputed payment. However, the chargeback on the £1,410.10 payment was properly declined because the merchant demonstrated that tickets were issued as a service, which is typically a valid defence in scam chargebacks. The ombudsman distinguished between distress caused by the scammers' actions versus any additional distress caused by Santander's handling. While Santander's error in using the wrong reason code contributed to Mrs H's distress, the ombudsman attributed most of her emotional upset to the fraudsters' actions rather than Santander's conduct. The £50 compensation for the chargeback error and 8% simple interest on the refunded amount were deemed fair and reasonable remedies.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Santander UK Plc, all decisions | 14,502 | 22% |
| Fraud reimbursement (APP scams), all decisions | 20,976 | 21% |
| Credit card, all decisions | 26,052 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website