Not upheld: Fraud reimbursement (APP scams) complaint against Revolut Ltd

Decision detail

Summary

Mr S fell victim to a sophisticated scam where he was tricked into handing over his Revolut card and PIN to someone claiming to be from his bank. The scammer then made six ATM withdrawals, two retail purchases totalling £5,599 plus fees. Mr S reported the transactions as unauthorised. The ombudsman found that while Transactions 1-6 and 8 were technically unauthorised, Mr S was liable due to gross negligence in sharing his security credentials. Transaction 7 was authorised because Mr S confirmed it in the app when unblocking his card. Revolut was not required to refund any amount, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Transactions 1-6 and 8 were technically unauthorised (made without Mr S's consent), Mr S was liable for them under the Payment Services Regulations because he intentionally failed to keep his security credentials secure by sharing his PIN and card with the scammer. Transaction 7 was authorised because Mr S actively confirmed in the app that he was making the £4,900 payment when unblocking his card, representing to Revolut that it was genuine. Although Mr S was manipulated by the scammer, the PSRs do not excuse liability based on the reason why consent was given. The ombudsman rejected arguments about vulnerability and language barriers, finding Mr S should have understood that giving his card and PIN to a third party would allow them to make transactions. Revolut's intervention in blocking the card for Payment 7 was proportionate, and chargebacks were not viable for the retail purchases.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website