TLW Client Successfully Claims Against Revolut Following Cryptocurrency Investment Scam

Authorised Push Payment Fraud is founded on impersonation, social engineering and deception – designed to get unsuspecting victims to authorise money transfers from their bank account to one in the fraudster’s control.

Most online or telephone banking transfers use the Faster Payments System, meaning cash leaves your account almost instantly. Once it is in the scammer’s possession, it can be moved elsewhere, even abroad, just as quickly, making it difficult or impossible to trace and recover.

APP Fraud affects individuals and businesses and can take many different, ever-evolving and increasingly sophisticated forms. Common types of fraud that TLW Solicitors’ specialist team deal with include romance scams, investment scams, employment scams, gold scams and conveyancing scams.

The government-backed Financial Ombudsman Service (FOS) was set up over two decades ago as an independent arbitrator of disputes between regulated financial institutions and their customers. They operate a two-step process: initially, an Investigator reviews the case and gives their opinion, but if one or both parties disagree, an Ombudsman conducts an independent investigation, and their decision is final.

In Ms S’s case, Revolut disagreed with the Investigator’s decision and asked for the case to be escalated to an Ombudsman. The Ombudsman’s review agreed with the initial decision to uphold Ms S’s complaint in part. Revolut refused to accept that it should have interfered in any way with the payments leaving Ms S’s account, but the Ombudsman highlighted:

• By 2023, many banks had sophisticated anti-fraud procedures, and Revolut was no exception.
• Rules also existed to restrict customers’ ability to purchase cryptocurrency using their bank accounts.
• Revolut should have been aware of multi-stage fraud, which this was, particularly involving cryptocurrency.
• Revolut only recently gained bank status in the UK and was formerly an Electronic Money Institution (EMI).
• FOS has seen a significant increase in multi-stage APP fraud using EMIs like Revolut.
• It is generally accepted that financial institutions know scams and fraud better than their customers and should therefore take steps to protect them.
• Good practice at the time would have been for Revolut to issue fraud warnings before payments were processed from Ms S’s account and to make additional checks to protect her from fraud.

The Ombudsman concluded that Revolut should have stepped in on 17th May 2023 when Ms S made a series of payments from her account to the crypto exchange within a 4-hour window. From then on, Revolut was considered responsible for her losses.

Ms S had to accept some liability for her losses, as the final payment on 5th June was made after she had complained to the merchant and Revolut about the investment possibly being a scam. Ms S was awarded £12,694.32 plus 8% interest from the date of the payments to the date of the settlement.

TLW Solicitors has a team of legal specialists experienced in dealing with APP fraud compensation claims. They handle similar cases daily and know how to communicate with the banks, Financial Ombudsman Service and other bodies involved in these claims. They understand the legal and financial jargon that can be used, helping clients navigate the complex claims and appeals processes. Having a legal specialist by your side ensures the process is handled smoothly and efficiently, giving clients the best result possible.

Shuhag Miah, a trainee solicitor within TLW, acted for Ms S in her claim. He said:

“It was a pleasure to work with Ms S and help her recover a significant proportion of the money she had lost. APP fraud scams are so sophisticated these days, and it is easy to see why people get caught out. I would encourage people to do their research, know what the red flags are and ask for independent advice before parting with any money.

If you or a loved one are the victim of a crypto scam or other APP fraud, you can still get help. Do not be ashamed or embarrassed – as this case shows, anyone can fall victim to these convincing scammers. Help is available, so you don’t have to deal with being a scam victim alone.

Get in touch with my experienced colleagues and we’ll review your case and advise on the best course of action, including whether you may be eligible to make a ‘no-win, no-fee’ refund claim to recover what you are rightfully owed.”