Sainsbury's Bank plc · DRN-6198709

The complaint Mr V has complained Sainsbury’s Bank plc lodged a fraud-related marker on the industry fraud database, CIFAS, in his name. What happened Mr V had opened a credit card account with Sainsbury’s in March 2024. He discovered in 2025 that as well as closing his account, Sainsbury’s had lodged a fraud-related marker on the industry fraud database, CIFAS, in his name. He complained to them and asked them to remove the marker. Sainsbury’s believed they had sufficient evidence to lodge a CIFAS marker. Mr V brought his complaint to the ombudsman service. Our investigator noted that Sainsbury’s were unable to confirm they’d received any fraud reports but had identified transactions Mr V made using his credit card (payments to an international payment service) which they believed were suspicious. They believed Mr V’s conduct was unexplained so lodged a CIFAS marker. Our investigator felt that there wasn’t enough evidence that Mr V’s conduct amounted to money mule activity. She asked Sainsbury’s to remove the marker and pay Mr V £300 for the trouble caused. Sainsbury’s accepted this outcome. Mr V felt the compensation was inadequate and asked that Sainsbury’s pay him £1,500. Mr V’s complaint has been referred to an ombudsman. What I’ve decided – and why I’ve considered all the available evidence and arguments to decide what’s fair and reasonable in the circumstances of this complaint. Having done so, I’ve reached the same outcome as our investigator. I’ll explain why. It is clear what the requirements are prior to lodging a marker. Specifically: “There must be reasonable grounds to believe that an identified fraud or financial crime has been committed or attempted. The evidence must be clear, relevant and rigorous.” Sainsbury’s must be able to provide clear evidence that an identified fraud was being committed, and Mr V was involved. This means that they must have more than a suspicion or a concern that Mr V may be involved. There’s also a requirement that Sainsbury’s should be giving the account holder an opportunity to explain what was going on. I’ve seen the evidence provided by Sainsbury’s. This confirms they didn’t receive any fraud

-- 1 of 2 --

reports, but their own internal fraud management identified the payments Mr V made using his credit card as potentially suspicious. These were all to different named accounts. After asking Mr V to confirm what he was doing, they were unconvinced by his evidence he was paying friends back for helping him to purchase a laptop. They decided to close his account and lodge a CIFAS marker. Mr V told our service he was repaying friends after borrowing funds. He shared copies of his bank account statements to show his account management. I accept a point that Sainsbury’s has subsequently made to our service that Mr V’s evidence has changed. At various times to Sainsbury’s, he was unable to explain why he was changing jobs and properties which they felt was unusual after taking out his credit card. That said, I am not convinced that Sainsbury’s has met the bar for lodging a CIFAS marker. They confirm Mr V’s conduct was unexplained – and that may well be the case – but that doesn’t in itself provide enough evidence to lodge a marker for money muling as required. Sainsbury’s has confirmed they have already removed the marker. I have considered Mr V’s request that more compensation should be payable. He had to pay additional costs for his borrowing as he was unable to access credit once the CIFAS marker existed. I have also considered the guidelines our service works to when considering monetary awards. I’m satisfied that what has happened to Mr V suggests the error caused more than the normal day to day frustration and equates to a larger single mistake, requiring a reasonable effort to sort out. This means I also believe that £300 is fair and reasonable. My final decision For the reasons given, my final decision is to instruct Sainsbury’s Bank plc to: • Remove the fraud-related marker in Mr V’s name; and • Pay £300 to Mr V for the trouble caused. Under the rules of the Financial Ombudsman Service, I’m required to ask Mr V to accept or reject my decision before 27 April 2026. Sandra Quinn Ombudsman

-- 2 of 2 --