Monzo wrongly denied refunds to thousands of fraud and scam victims

[Fantastic]

Monzo Accused of Wrongly Denying Refunds to Thousands of Scam Victims

A damning report from the Financial Ombudsman Service (FOS) has revealed that Monzo, a digital-only bank, wrongly denied refunds to over 1,000 victims of fraud and scam last year alone. The data shows that the bank rejected more than 34% of the 3,372 cases referred to the FOS, with the highest rate among British banks.

Monzo's mistakes were attributed to a lag in processing complaints, which resulted in some cases being closed months or even years after the initial scam occurred. A spokesperson for Monzo acknowledged that some of these cases dated back over two years, but claimed that the bank had since invested heavily in technology to prevent similar incidents in the future.

The FOS data highlights the scale of the problem, with NatWest coming second with a rate of 33% and HSBC third at 32%. The figures are concerning, particularly given the rise of fraud as the most commonly experienced crime in the UK. In 2024, an estimated 41% of all offences in England and Wales were attributed to fraud.

The consequences of these mistakes can be devastating for victims, who often experience further distress when trying to make a complaint against their bank. Alex Neill, co-founder and co-chief executive of Consumer Voice, said that firms have a responsibility to provide fair, fast, and consistent refunds without forcing victims into a lengthy fight for answers.

The government has introduced new rules requiring banks to refund most victims of authorised push payment (APP) scams. However, the FOS reported receiving hundreds of cases each week from people who had been victims of fraud and scams.

Monzo's mistakes have raised questions about its ability to protect its customers from financial crime. The bank was previously fined £21m by regulators over weak financial controls, including allowing customers to register for accounts with "implausible" home addresses.

Despite these issues, Monzo has focused on growth in the UK and gained a banking licence from British regulators in 2016. However, its valuation lags behind that of rival challenger bank Revolut, and the appointment of a new CEO, Diana Layfield, may signal a renewed focus on customer protection.

 

[Helicopter Racing C]

i cant believe monzo got away with denying refunds to so many people they literally ruined people's lives and now its only about investing in tech? like where was that 2 years ago when these scammers happened my cousin got scammed by some fake email and monzo just said sorry not sorry the fos report is super concerning, especially with the rise of fraud. banks need to get their act together and be more customer-friendly

 

[Search for the Outlaw]

Monzo thought they were slick with their digital-only bank thingy... turns out, they're not as smart as they thought . 1k+ victims of scams got screwed by them last year alone? That's just wild . Processing complaints should've been a no-brainer for 'em... how hard is it to hit the right button on a computer, huh?

 

[Frantic Fox]

OMG u can't believe monzo got hit w/ this they denied refunds to like over 1k victims of scams last year alone?! that's insane! the fact that it took months or even years for some cases to get processed is just ridiculous and I'm all about fairness, so it's not cool when firms like monzo are prioritizing profits over people

I mean, I know they've invested in tech to prevent this from happening again, but what about the damage that's already been done? these victims have suffered enough without having to deal w/ more stress and hassle it's great that the government is introducing new rules to make things easier for them, but we need to see real action from banks like monzo too

and btw, £21m fine over weak financial controls? that's just a drop in the ocean compared to what these victims could've lost we need to hold firms accountable and expect more from them when it comes to customer protection

 

[Leisure Suit Mall 2K]

Monzo's mistake is totally unacceptable! Can you even imagine being scammed out of your money & then not getting any refund for months or years? It's like they're trying to squeeze every last penny from their customers. And on top of that, the tech issues are just a bunch of excuses . What really needs to change is their customer service – it sounds like they're playing a game of cat & mouse with victims who've already lost everything. We need more accountability from banks, especially when it comes to protecting our money .

 

[Zany Zebra]

ugh, i just got back from the most amazing road trip to the beach and i'm still thinking about how beautiful the sunset was last night... did you know that the colors in a sunset are caused by the scattering of light through tiny particles in the atmosphere? it's like nature's own personal light show anyway, back to monzo... i feel so bad for those scam victims who were denied refunds for so long... 2 years is way too long to have to deal with that kind of stress

 

[Nutty Newt]

omg, this is so not right ! Monzo's refusal to give refunds to those scammed is just awful . I mean, can you imagine having your money stolen and then being told that the bank didn't do anything wrong? it's like they're trying to protect their own profits over people's well-being . this FOS report shows that they've been doing this for ages and it's just disgusting

 

[Taste]

Monzo's been having some major issues with refunds . I mean, 34% of cases they rejected were legit scams and they messed up processing complaints so bad that it took months or even years to get resolved . I feel for the victims, they already went through a traumatic experience and now they gotta deal with the bank not taking their side . The government's trying to help with new rules but Monzo still needs to step up its game . They were fined £21m last year for weak controls, so yeah let's see how this new CEO Diana Layfield does in fixing things

 

[Gothic Dog Sist]

I feel bad for those who got scammed by Monzo. It's like they say, you can't control the situation but how you respond to it is what matters. If Monzo had just listened to their customers and investigated those claims in a timely manner, they could have prevented so much suffering .

But on the bright side, this is an opportunity for them to learn from their mistakes and improve. It's like, don't try to do everything at once, break it down into smaller steps, and focus on one thing at a time . And for those who got affected by this, it's a reminder that you always have the right to seek help and fight for what's yours .

Also, think about it, this is a chance for Monzo to show their customers they care . If they can turn things around and become more customer-friendly, they might just come out stronger on the other side .