A UK court has ruled Santander is not liable after a customer lost £750,000 in a crypto scam, reinforcing that banks aren't responsible for authorized but fraudulent transfers.
A UK High Court ruling has stirred debate in the digital finance world, as Santander Bank has been deemed not responsible for a customer’s £750,000 loss in a cryptocurrency scam. The decision underscores the legal principle that banks aren’t liable for fraudulent transactions that customers authorize themselves.
The case involved a retired aerospace engineer who was duped into investing in what he believed was a legitimate crypto trading platform promising high returns. Over the span of several weeks, he made multiple transfers from his Santander account—only to later discover that the money had been sent to scammers running a fake investment scheme.
Following the loss, the customer took legal action, claiming the bank should have recognized the suspicious nature of the transactions and intervened. He argued that red flags were present and that Santander had a duty of care to protect him from financial harm.
Despite acknowledging the unfortunate circumstances, the court ruled that Santander acted within the law and followed standard procedures. The judge noted that since the customer personally authorized the payments—even under fraudulent influence—the bank could not be held liable. The ruling reinforces that banks are typically not obligated to prevent authorized payments, even if they are part of a scam.
This case reflects a growing legal stance in the UK, where courts are increasingly cautious about assigning liability to banks for customer-authorized fraud unless gross negligence or misconduct can be clearly proven.
As crypto scams continue to rise, so does the burden on both consumers and financial institutions. Fraudsters are using ever more sophisticated tactics to target individuals—especially those new to the digital asset world. In response, Santander has introduced tighter controls, including caps on crypto-related transfers: customers can now send no more than £1,000 per transaction and £3,000 over 30 days. The bank is also working to block real-time payments to certain crypto exchanges altogether.
However, these safeguards can’t fully eliminate risk—especially when the fraud relies on victims authorizing payments under false beliefs.
This court case offers a clear lesson: while banks are improving fraud prevention efforts, individuals still bear much of the responsibility in the digital finance era. With crypto transactions often instant and irreversible, being cautious and informed is more important than ever.
Before investing or sending funds, consumers should be wary of offers that promise extraordinary returns, verify the legitimacy of platforms, and think twice before transferring money. Because if a scam occurs, legal protections may be limited—even if a bank is involved.
1
2
3
4
.svg)
