Ms Olivia Hart, a London-based client, fell victim to a social engineering fraud that led to an unauthorised transfer from her Monzo account. Aldwych Legal was instructed to pursue a banking dispute under UK consumer and financial services law, seeking redress for the loss and a review of the bank’s safeguards.
What Happened
On 29 December 2023, Olivia Hart received a phone call from someone claiming to be a Monzo representative, urging immediate action to protect her funds. The caller directed her to transfer £6,024.42 to an international account named Tab Limited, using a fabricated sense of urgency about alleged suspicious activity.
After realising the risk, she contacted Monzo through official channels to cancel the transfer, but the funds had already cleared the following day. Earlier in the month, she had received a fraudulent Evri text message prompting a minor payment to rebook a delivery, which helped the fraudster harvest personal and banking information.
Legal Issues
- Breaches of the bank’s duty of care to prevent unauthorised transactions and protect customer funds.
- Application of the Payment Services Regulations 2017, requiring banks to prove customer negligence to deny liability.
- Consumer protection under the Consumer Credit Act 1974 for unauthorised transfers where prompt notification is given.
Our Approach
Aldwych Legal prepared a Letter of Claim to Monzo detailing the fraud, the bank’s alleged duty of care, and our client’s consumer rights. The letter set out the legal basis for relief, the potential damages, and invited a swift resolution to avoid court action. We followed the Pre-Action Protocol for Banking and Financial Disputes and engaged in targeted correspondence to narrow issues before escalation.
We coordinated with the client to obtain bank records, transaction histories, and a chronology of events, and prepared supporting witness statements where needed. Negotiations ran alongside diligent documentation and adherence to the CPR timelines, with a view to Alternative Dispute Resolution if possible.
Outcome
The bank engaged in constructive discussions and acknowledged the risk of unauthorised activity. Monzo agreed to reimburse the loss of £6,024.42 and to review its security measures to prevent recurrence. The matter progressed toward resolution without court proceedings, with a clear plan for recompense and improved safeguards.
Result / Why It Matters
This matter demonstrates Aldwych Legal’s ability to secure prompt redress for clients facing banking fraud and to hold financial institutions to account under relevant consumer and banking laws. Our approach combines clear communication, procedural diligence, and practical outcomes for clients in London and beyond.
