Mr T complained to the bank that there was a “sizable discrepancy” between the transactions on his Revolut app and his account balance, to the tune of £2,945.69.
A Revolut customer has been awarded compensation of almost £3,000 plus 8% interest after an investigation by the Financial Ombudsman Service (FOS), the body responsible for resolving disputes between financial services providers and their customers.
What happened to Mr T?
Revolut banking customer Mr T had set up a Revolut Junior Account linked to his own bank account to pay his son for household chores and easily transfer funds at Christmas and birthdays. In May 2023, Mr T noticed a shortfall between the transactions on his Revolut app and what he saw in his account. He subsequently noticed six months of transactions he claimed he had not authorised, totalling £2,954.69.
Mr T complained to Revolut directly, but the bank refused to uphold his claim, so he escalated it to the Financial Ombudsman Service for an independent investigation. The initial investigator agreed with Revolut’s decision not to refund Mr T based on technical evidence put forward by the bank relating to Mr T’s personal device – it claimed that he had given access to his device to a third party, which he denies. Mr T still disagreed and asked for the case to be reviewed by an Ombudsman, the last stage in the FOS claims process.
FOS decision
+ −Ultimately, the Ombudsman upheld Mr T’s claim on the grounds that his testimony outweighed the technical evidence put forward by Revolut and considered by the initial investigator.
Under the Payment Services Regulations 2017 (PSRs), it is the responsibility of the bank or financial institution to prove that gross neglect led to unauthorised transactions on a customer’s account. Otherwise, the starting point is that the customer is to be reimbursed. The Ombudsman believed Mr T’s claim that he did not authorise the disputed transactions (which did not show up on his app) for the following reasons:
- Before November 2022, the transactions between Mr T’s main Revolut account and the Junior Account set up for his son were relatively low value and rarely occurred more than once a day.
- These transactions also generally took place after 10:15am on weekends or just before or after school hours during the week. The disputed transactions, however, were at more unusual times, such as 1:30am or 5:55am, which is not consistent with Mr T’s usual behaviour.
- There is insufficient evidence to support Revolut’s claim that Mr T acted negligently with his bank details.
The Ombudsman instructed Revolut to reimburse the £2,954.69 lost to the unauthorised transactions plus 8% interest from the dates of the transactions to the date of the final settlement.
What is unauthorised transaction fraud?
+ −At TLW Solicitors, we regularly advise clients on two main types of transaction fraud: authorised and unauthorised.
Authorised push payment (APP) fraud happens when scammers convince victims to willingly make transactions or payments from their bank account to the scammer’s, usually through impersonation and manipulation. The starting point for any complaints regarding APP fraud is that the account holder is liable for losses. However, FOS is increasingly finding that banks do not have sufficient policies or procedures in place to protect customers from scams, finding banks negligent and awarding customers compensation as a result.
Unauthorised transaction fraud happens when scammers gain access to victims’ confidential information relating to their bank or financial services accounts – such as PINs, one-time-passcodes (OTPs), or passwords – which they then use to access, and sometimes move, the victims’ money. The starting point for these claims is that the victim should be reimbursed unless the customer can be proven to have acted negligently regarding their sensitive information. If banks refuse refunds on these grounds, the complaint can be escalated to FOS for an independent investigation which will decide whether the complainant has, indeed, been negligent.
TLW Solicitors’ view
+ −Sarah Spruce, Legal Director and Head of the Scams team at TLW Solicitors, commented:
If banks are going to dispute unauthorised transactions, the burden of proof is on them to show that the victim has acted negligently and therefore is responsible for the loss, which Revolut was unable to do in this case. If your bank has refused to refund transactions you have not authorised, there are steps that you can take to see if you may be entitled to make a refund claim, and my specialist team can help you!
How can TLW Solicitors help?
+ −If you, a loved one, or even your business has lost money due to unauthorised transaction fraud, and your bank refuses to return the funds, speak to TLW Solicitors about making a compensation claim.
We offer a free, no-obligation assessment of your case and will decide whether to bring your claim. If we take on your case, we work on a ‘no win, no fee’ basis, meaning you do not pay us anything if your refund claim is unsuccessful.
Please get in touch with our specialist team for a confidential, no-obligation conversation.
You can call us on 0800 169 5925, email info@tlwsolicitors.co.uk or complete the callback form below.
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