An appeals court ruled on Monday that banks could be liable if they fail to protect individual customers against push payment fraud, extending the scope of a key legal obligation in a lawsuit against Barclays over a £700,000 ($913,000) scam.
A customer who lost £700,000 ($948,600) to a push payment fraud has urged the Court of Appeal to find that Barclays had a duty to protect her from the scam and order the financial services giant to pay back the lost cash.
Barclays right not to pay out after couple scammed out of £700,000
Daily Record 20/01/2021 Emma Munbodh & Kirsten McStay
A woman who was conned into handing over £700,000 to a fraud investigation team , has lost every single penny - and her bank don t need to pay out.
Fiona Philipp transferred two sums of money from her Barclays bank account - one amounting to £400,000 and another £300,000 - to accounts in the United Arab Emirates back in 2018.
She and her husband were under the impression that they were helping a serious fraud investigation being run by the city watchdog, the Financial Conduct Authority (FCA).
However, the couple were defrauded, and, in a ruling today, a judge said Barclays is not liable to compensate for any losses.