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Barclays Scam Refund: £25,600 Recovered After Crypto Fraud

A Barclays customer who fell victim to a cryptocurrency investment scam has successfully recovered their losses after the bank was found to have failed in its duty to act. The Financial Ombudsman Service ruled that Barclays should have done more to identify the warning signs of fraud and intervene sooner, resulting in the customer receiving a full refund. This case highlights how victims of crypto scams may still have routes to recover their money when banks do not provide adequate protection.

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How a Social Media Crypto Scam Fooled a Barclays Customer

When Mr T lost nearly £60,000 to a cryptocurrency investment scam, Barclays initially refused any refund. They claimed to have fulfilled their duty of care by asking standard questions during an intervention call about a suspicious £50,000 payment. But Mr T’s successful challenge to this decision shows that simply asking questions isn’t enough — banks must ask the right questions, in the right way.

The Instagram Investment Trap

Mr T was searching for ways to grow his savings when he came across investment adverts on Instagram. After filling out some online enquiry forms, he was contacted by a ‘broker’ from what seemed to be a legitimate investment firm. The scam was carefully planned: a professional-looking website, a London business address, and even Zoom calls with knowledgeable representatives. These tactics made the scheme look genuine and trustworthy.

A Pattern of Payments That Should Have Raised Alarms

Between May and July 2024, Mr T made six payments to crypto exchanges from two Barclays accounts. The largest was a £50,000 transfer — a sharp increase from his usual activity, where most payments were under £1,000.

● 16 May: £3,500
● 17 May: £3,000
● 11 June: £3,000
● 14 June: £769.97 credit (not included in loss total)
● 28 June: £50,000 (Barclays intervened)
● 18 July: £1,200

Total loss: £59,930.03

Throughout this time, Mr T was shown fake profits via a convincing dashboard, reinforcing the belief that his investment was growing. Only when he tried to withdraw did he realise it was a scam — the fraudsters demanded 23% of his ‘fund’ to release the money.

Barclays’ Initial Refusal to Refund

Barclays declined Mr T’s refund request. They argued the CRM Code didn’t apply, since payments were made to a wallet in Mr T’s name. The bank claimed it had provided a sufficient warning during an intervention call before the £50,000 transfer and that their script-based questioning met their regulatory obligations.

Why the £50,000 Payment Should Have Triggered Fraud Checks

When the case reached the Financial Ombudsman, the first investigator sided with Barclays. But Mr T requested a full review — and it changed everything.

The final Ombudsman looked at the pattern and context:

The Ombudsman’s Final Decision

The Ombudsman ruled that Barclays failed to conduct proper fraud checks and should be liable for the final two payments (£51,200). However, due to Mr T’s limited due diligence, a 50% responsibility share was applied.

Mr T recovered £25,600 plus 8% interest — a significant outcome despite partial responsibility.

Why Choose Compensation Adviser?

At Compensation Adviser, we specialise in helping people recover money lost to cryptocurrency scams. Our expert team understands how these scams work — and challenge financial institutions when fraud checks fail.

Here’s what you can expect from our service:

A dedicated crypto claims team – We understand the complexities of crypto fraud — including fake platforms, phishing scams, and wallet theft.

A proven track record – We’ve successfully helped clients reclaim losses from financial mis-selling and scam-related cases.

End-to-end support – From your free initial assessment to final resolution, we’re here every step of the way.

Current expertise – We stay informed on the latest scam tactics, banking standards, and Financial Ombudsman decisions.

Fair and transparent pricing – Our success fee is 15% + VAT, and you only pay it if we recover money for you. We also cap our fees at one of the lowest levels in the industry — ensuring more of your recovered funds go back to you.

Note: A cancellation fee may apply if you cancel more than 14 days after signing your agreement.

How to contact us:

Call us: 0114 698 8151
Email us: info@compensationadviser.co.uk
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Whether you’ve been misled by a regulated firm or fallen victim to a scam – we’re here to help. And we only charge if we’re successful.

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Lost Money to a crypto scam?

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Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the bank, business or person against whom you wish to complain or to the Financial Ombudsman Service or the Financial Services Compensation Scheme, whichever is applicable to your claim.