An investor who lost a large part of her life savings with the collapse of the 79th Group says she is ‘frankly stunned’ at an island-based bank’s response to her claim for reimbursement.

She claims Standard Bank failed in its duty of care to protect customers from ‘detectable, predictable and avoidable’ fraud.

But it insists it is not liable for any losses.

In contrast, Lloyds Bank International has begun compensating, in full or in part, those who invested with the 79th Group.

City of London Police announced in February 2025 it was investigating the 79th Group in connection with allegations of suspected widespread fraud.

The Southport-based group was placed in administration two month later. Joint administrators believe the investment scheme ‘likely operated as a Ponzi scheme’.

It is estimated that some £200m is owed. Around 3,700 investors, including dozens who banked in the island, are facing significant losses.

The 79th Group deny any wrongdoing. Its former directors have been given the go-ahead to pursue a judicial review challenging the lawfulness of warrants issued against them.

An investor, who does not wish to be named, invested £100,000 with 79th Group in June 2024, paid from her Standard Bank account. Her husband also invested in the group.

They has been assured by their financial advisor that the investment was low risk and their money 100% safe.

With no substantive response from Standard Bank in the Isle of Man to her call for reimbursement, she raised an official complaint.

In May, Standard Bank contacted her to say they had carried out a full review into her claim.

It said its business control unit had contacted her by phone in September 2024 to clarify the purpose of her payment.

Based on her confirmation that it was an investment, the bank processed the payment.

The bank’s Isle of Man client team told her: ‘There was no evidence of any failure, error, or breach on the part of the bank.

‘The bank is satisfied it has acted with reasonable care in fulfilling its contractual and legal obligations and is therefore not liable for any losses you may have suffered.’

The investor queried why the bank would have contacted her months after the fund transfer - and insists she and her husband never received any sort of contact at the time.

She told the bank: ‘I am frankly stunned by the lack of genuine communication relating to this matter and your inability, or unwillingness, to engage with me on such a serious issue.’

The investor told IoM Today that she has have been trying to engage with Standard Bank since December 2025, initially to ask what measures and procedures they have in place to protect their clients against fraudulent transactions.

She said: ‘There is a lot of frustration with the sending banks as many investors are just being ignored and getting either no response or boiler plate response letters which do not address any of the questions asked or the specifics of the case.’

‘There are at least 19 other Standard Bank investors I am aware of who have all written, asking similar questions about their case and all of them have been ignored.’

Meanwhile, Lloyds Bank has refunded sums ranging from £25,000 to almost £220,000 to 79th Group investors who held accounts in the island.

In one case it acknowledged it could have done more to protect the customer from what it described as ‘Authorised Push Payment fraud’.