Monzo Fails Victims of Scams: Thousands Wrongly Denied Refunds
Millions of UK consumers who fell victim to scams have been left reeling as digital bank Monzo wrongly denied them refunds for losses incurred. Data from the Financial Ombudsman Service (FOS) reveals that over 1,000 cases involving fraud and scam complaints were rejected by Monzo last year alone, with a staggering 34% of cases deemed incorrect.
According to FOS figures, Monzo had one of the highest rates of rejection among major British banks, with more than 3,000 cases disputed. This is worrying given that fraud has become the most commonly reported crime in the UK, accounting for an estimated 41% of all offences in England and Wales last year.
Complaints from victims often involve authorised push payment (APP) scams, chip and pin fraud, and identity theft. Many have spoken out about their distress when dealing with banks over these issues, saying they were left feeling worried and ashamed.
The FOS said it receives hundreds of cases a week, highlighting the need for improved processes within major financial institutions to support victims of scams. Monzo has acknowledged that some cases date back more than two years ago, while others have occurred as recently as last summer.
Despite Monzo's efforts to improve its fraud prevention technology, data shows that over 2.9 times the value of fraud was still lost in 2025 compared to the previous year. This highlights the need for banks to take a proactive approach in handling scam cases and ensuring swift refunds are made.
UK Finance estimates there were 185,733 APP cases last year, down from a peak of 232,427 in 2023. However, victims often struggle to access compensation due to lengthy complaints processes.
As government introduces new rules requiring banks to refund most victims of APP fraud, many are calling for more support and swift action from financial institutions.
Millions of UK consumers who fell victim to scams have been left reeling as digital bank Monzo wrongly denied them refunds for losses incurred. Data from the Financial Ombudsman Service (FOS) reveals that over 1,000 cases involving fraud and scam complaints were rejected by Monzo last year alone, with a staggering 34% of cases deemed incorrect.
According to FOS figures, Monzo had one of the highest rates of rejection among major British banks, with more than 3,000 cases disputed. This is worrying given that fraud has become the most commonly reported crime in the UK, accounting for an estimated 41% of all offences in England and Wales last year.
Complaints from victims often involve authorised push payment (APP) scams, chip and pin fraud, and identity theft. Many have spoken out about their distress when dealing with banks over these issues, saying they were left feeling worried and ashamed.
The FOS said it receives hundreds of cases a week, highlighting the need for improved processes within major financial institutions to support victims of scams. Monzo has acknowledged that some cases date back more than two years ago, while others have occurred as recently as last summer.
Despite Monzo's efforts to improve its fraud prevention technology, data shows that over 2.9 times the value of fraud was still lost in 2025 compared to the previous year. This highlights the need for banks to take a proactive approach in handling scam cases and ensuring swift refunds are made.
UK Finance estimates there were 185,733 APP cases last year, down from a peak of 232,427 in 2023. However, victims often struggle to access compensation due to lengthy complaints processes.
As government introduces new rules requiring banks to refund most victims of APP fraud, many are calling for more support and swift action from financial institutions.
Monzo's got some serious explaining to do here. I mean, 3k cases disputed is a lot! You'd think they'd have better systems in place to spot scams from a mile away 
But nope, thousands of people get wronged and it's all left to the FOS to sort out 
. And don't even get me started on APP scams - these are literally just phishing scams in disguise, you can't even trust those banking apps anymore 
. They need to step up their game and start taking these cases seriously ASAP! And what's with the delay in refunds? Two years is way too long for anyone to have to wait 
. It's just common sense, really.
. They need to improve their processes and make sure these types of scams aren't happening in the first place 
. Until then, victims are gonna keep getting screwed 
just heard about monzo screwing up refund for scammed customers and it's super disappointing... like how can they mess this up so badly? 
1k+ cases rejected last year alone is insane! what kinda tech are they using to prevent scams that's not working? 
any bank worth its salt should have this stuff down pat by now. 
victims r going thru hell trying to get their money back and it's like banks just don't care 
185k app cases in 2024 is crazy but still, how many got refunds tho? 
Monzo needs to step up their game and make sure these people get the refunds they deserve ASAP! I mean 34% of cases being deemed incorrect? That's just not right 
. And what really gets me is that some cases are from years ago 
. Like, come on Monzo, you should be doing more to help people who have already lost so much.
. We need banks like Monzo to take responsibility and make sure their processes are in place to support people who have been victimized.
. And with these new rules coming in, I hope financial institutions start taking this seriously. We need swift refunds and more support for these victims. It's just not right that they're still struggling to get what they deserve 
how can you even deny someone a refund when it's been proven that your security measures failed them? it's like saying "sorry, pal, our system says you owe us now" 
what kind of bank does that? and the fact that Monzo has to deal with over 3k cases is just ridiculous 
it's like, you take our money by promising safety & security, but then you don't even try to help us get it back 
and this is not an isolated issue, many ppl r saying the same thing about other banks too 
this is just not right 
or else they'll be facing a lot of backlash from customers and regulatory bodies too 
. And for what? A lengthy complaints process? That's not right at all 
!
Monzo's refund process is a total mess 
it's not cool when you're trying to recover from something bad & the bank makes it even harder 
.
. 41% of all offences in England and Wales last year were accounted for by fraud alone 
.
. The government's new rules are a step in the right direction, but we need to see banks like Monzo taking swift action and improving their processes ASAP 
. And what about all those cases that date back two years? How are we supposed to know if Monzo is being more efficient now than it was then? We need more oversight and accountability, stat! 