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Monzo Wrongly Denies Thousands of Fraud Refunds
7 Feb
Summary
- Monzo wrongly rejected over 1,000 fraud complaints last year.
- 34% of Monzo's fraud cases referred to FOS were wrongly rejected.
- Fraud is the most common crime in the UK, with 41% of offenses.
Monzo wrongly rejected over 1,000 fraud and scam complaints in the past year, according to data from the Financial Ombudsman Service (FOS). The digital bank was found to have made incorrect decisions in 34% of 3,372 cases referred to the FOS, the highest rate among major British banks. NatWest and HSBC also had significant rejection rates.
Fraud is now the most commonly experienced crime in the UK, representing 41% of all offenses in England and Wales. Consumers Voice emphasizes the distress victims endure when navigating bank complaints, urging for fair and swift reimbursement processes.
New government rules from 2024 obligate banks to refund most victims of authorised push payment (APP) fraud. In 2024, fraudsters took £450.7 million from victims, with £267.1 million paid in compensation.
Monzo, which launched in 2015, has faced other challenges, including a £21 million fine for weak financial crime controls and a recent leadership change. Despite these issues, the bank reported a record £60.5 million in pre-tax profit for the year ending March, with revenues of £1.2 billion. The FOS advises victims to first contact their bank and then escalate to the ombudsman if unsatisfied.
