Monzo wrongly denied refunds to thousands of fraud and scam victims

The Guardian - World NewsCenter-LeftEN 3 min read 100% complete by Lauren AlmeidaFebruary 7, 2026 at 12:00 PM

AI Summary

medium article 3 min

Monzo Bank wrongly denied refunds to thousands of fraud and scam victims, according to data from the Financial Ombudsman Service (FOS). In 2023, Monzo wrongly rejected 34% of over 3,000 fraud complaints referred to the FOS, the highest rate among major British banks. These complaints included authorized push payment (APP) scams, chip and pin fraud, and identity theft. While Monzo claims to have invested in fraud prevention technology, the FOS receives hundreds of fraud and scam cases weekly. In 2024, UK Finance reported a decrease in APP fraud cases but still recorded £450.7m taken by fraudsters, with £267.1m paid out in compensation. The government introduced a rule in 2024 obligating banks to refund most APP fraud victims.

Key Entities & Roles

Key Player Opposition Context

Wales 40% Consumer Voice 40% England 40% UK 50% Alex Neill 50% UK Finance 60% HSBC 60% NatWest 60% Financial Ombudsman Service (FOS) ×480% Monzo ×690%

Keywords

fraud 100% scams 90% refunds 80% financial ombudsman service 70% authorised push payment scams 70% bank complaints 60% fraud victims 60% reimbursement 50% digital bank 40%