A Tesco Bank customer is embroiled in a dispute over a £250 scam after the bank initially refunded the money only to reclaim it later. The individual fell victim to a common 'friend in need' scam, where fraudsters impersonate a contact requesting urgent financial assistance, often in the form of gift vouchers. The scam occurred shortly after the customer had genuinely spoken to an ill friend, making the fraudulent request appear more plausible.
The scam involved the purchase of £250 worth of vouchers, which were then sent to the fraudsters. Upon realising they had been scammed, the customer contacted Tesco Bank to initiate a chargeback, a mechanism allowing consumers to dispute transactions. The bank processed the chargeback and the money was returned to the customer's account. However, this relief was short-lived as Tesco Bank subsequently reversed the refund, leaving the customer out of pocket once more.
This reversal has prompted the customer to question the fairness of the bank's decision and their rights under UK consumer law. Under the Payment Services Regulations 2017, banks have obligations to protect customers from unauthorised payments and to act with due diligence. While chargebacks are a common recourse for consumers, their reversal can occur if the bank determines that the transaction was authorised by the account holder, even if under duress or deception, or if the merchant disputes the chargeback successfully.
The Financial Ombudsman Service (FOS) frequently handles cases involving scam victims and bank liability. The FOS assesses each case individually, considering factors such as the bank's security measures, the customer's actions, and the sophistication of the scam. Their rulings often provide clarity on whether a bank has acted fairly and in accordance with regulatory obligations when customers lose money to fraud.
This incident underscores the growing challenge posed by 'authorised push payment' (APP) scams, where victims are tricked into authorising payments to fraudsters. While new voluntary codes and upcoming legislation aim to increase protection for APP scam victims, the current landscape can still leave consumers vulnerable, particularly when banks dispute the level of their liability. The customer's pursuit of a permanent refund highlights the ongoing battle between consumers, banks, and increasingly sophisticated fraudsters.