ao link
0 £0.00
This item was added to your basket
Credit Strategy homepage
Intelligence, Insight and community for responsible professionals in credit

FOS: Banks should not blame customers for falling for scams

The Financial Ombudsman Service (FOS) has warned banks it is “not fair” to blame customers automatically for scams they have fallen for.

In 2017, customers transferred nearly £240m to fraudsters, only a quarter of which was refunded by financial firms.


However, the growing sophistication of fraud techniques mean it is no longer reasonable for banks to refuse to refund customers on the basis of carelessness.


“Unlike most other complaints we see, complaints about fraud and scams involve – whether it’s accepted or suspected – the actions of a criminal third party,” FOS chief ombudsman Caroline Wayman said in a blog.


While people may be wiser to emails from strangers offering unexpected windfalls, the ombudsman said, fraudsters are now frequently creating fake websites which look identical to banks’ online systems or text messages which look like they’re from someone’s bank. In many cases, people are more susceptible to these techniques, it said.


Wayman added that in many cases, both the bank and their customer say “in strong terms” that they are not responsible for the losses.


“We also often hear from banks that their customers have acted with ‘gross negligence’ – and this means they’re not liable for the money their customer has lost,” she said. “However, gross negligence is more than just being careless or negligent. And as our case studies show, the evolution of criminals’ methods – in particular, their sophisticated use of technology and manipulative social engineering – means it’s an increasingly difficult case to make.”

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees


Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback – an online news and information service for the UK’s commercial and consumer credit industry. is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group