Will your bank refund you if you are scammed by a bank transfer

Many people only find out about bank transfer scam rules after something has gone wrong. A message from a “bank” or “police officer” appears, you are told your money is at risk, and a few taps later the balance has gone from your account.

For years, refunds after this kind of crime were very hit and miss. Some banks paid, some did not, and decisions often felt inconsistent. That has now changed. New rules mean that in many cases, if you are tricked into sending money by Faster Payments, you should get most or all of it back – but there are gaps and conditions that are easy to misunderstand.

This guide explains when your bank has to refund you after an authorised push payment scam, when it can say no, and what to do if you think a decision is unfair.

What is an authorised push payment scam?

An authorised push payment (APP) scam happens when:

• you are tricked into sending money yourself, for example by bank transfer, and
• you did actually authorise the payment, even though you were misled.

Typical examples include:

• someone pretending to be from your bank saying your money is at risk and must be “moved to a safe account”
• fake investment or crypto schemes that convince you to send money to a fraudster’s account
• purchase scams where you pay for goods that never arrive
• romance and impersonation scams, where a criminal slowly builds trust and then asks for money.

Industry data collected by the Payment Systems Regulator (PSR) and the banking trade body shows that APP fraud has been costing households hundreds of millions of pounds a year, with purchase scams the most common and investment scams causing the biggest losses. Government and regulators now describe fraud as a national threat that funds serious organised crime.

How the new reimbursement rules work

On 7 October 2024 a new mandatory reimbursement regime for APP fraud took effect for Faster Payments. Policy statements from the PSR and regulatory briefings explain the core of the system: payment providers must reimburse in-scope customers who fall victim to APP scams in most cases, up to a cap of eighty five thousand pounds per case. The cost is split between the bank that sends the money and the bank that receives it.

Money guidance services report that under these rules most victims should now receive a decision – and, where eligible, their refund – within around five working days of making a claim.

A few key points from official material:

• the rules cover APP scams paid through the Faster Payments system, which accounts for the vast majority of these frauds by volume
• the rules apply to most personal customers and many small businesses, but very large companies are outside scope
• banks can charge a small excess in certain cases, meaning you might not get the first slice of a loss back
• there is a maximum reimbursement limit per case, currently set at eighty five thousand pounds.

The new regime replaces the older voluntary Contingent Reimbursement Model (CRM) Code, which ran from May 2019 until 6 October 2024 and only applied to banks that chose to sign up. Citizens Advice and other consumer bodies had highlighted big differences between firms under that old code – the new rules are meant to make outcomes more consistent.

When your bank should refund you

Regulatory guidance and MoneyHelper’s scam refund explainer say that under the new rules, your bank should normally refund you if:

• the payment was an APP scam covered by the rules
• you were a consumer or small business customer covered by the scheme
• you were not acting fraudulently
• you followed any “customer standards” that apply, such as not ignoring clear warnings.

In practice, that means most ordinary people who are taken in by a convincing scam should be reimbursed, even if they made more than one payment.

Examples where banks are expected to pay include:

• you sent money after a caller claimed to be from your bank’s fraud team and urged you to move funds urgently
• you made a transfer after a criminal took over a messaging account and posed as a family member asking for help
• you were persuaded to invest in what turned out to be a fake bond or savings product after seeing an advert online.

The Financial Ombudsman Service has made it clear in its decisions that banks must look at the overall context: how convincing the scam was, what warnings were given, and whether the customer’s behaviour was reasonable in the circumstances, rather than simply saying “you authorised it, so it is your fault”.

When a bank can say no

Even under the new regime, there are situations where a bank can refuse reimbursement.

Guidance from the PSR, the financial regulator and consumer bodies highlights the main exceptions:

1. You were involved in the fraud yourself

   If the bank has good evidence that you were knowingly involved in the scam or trying to abuse the reimbursement rules, it can refuse to pay. This is aimed at organised fraud and people making dishonest claims, not ordinary victims.

2. You seriously ignored clear warnings

   Banks are expected to put warnings and checks in place – for example, on-screen messages about common scams or confirmation of payee name matching. If you repeatedly ignore very clear warnings, or override checks that should have made you stop and think, the bank may argue that you did not meet the required customer standards.

3. The payment was outside the scheme

   The new rules currently cover Faster Payments between payment providers in this country. They do not apply in the same way to:

   • card payments
   • cheques
   • some types of international transfer
   • cash withdrawals.

   Recent media reports note that scams involving international payments have grown, partly because criminals know that reimbursement rules are tighter for domestic transfers than for money sent overseas.

4. You reported the scam far too late

   There are time limits for making a claim. Exact details can vary, but broadly speaking you should report a scam as soon as you realise something is wrong. Waiting many months or years can make it harder to get a refund.

Even where one of these exceptions might apply, the bank still has to look at your individual circumstances. For example, guidance from the Financial Ombudsman stresses that firms must take account of vulnerability, such as a customer’s age, illness or learning difficulties, when deciding whether they acted reasonably.

What to do immediately after a bank transfer scam

Consumer advice services and the PSR all emphasise that acting fast can limit the damage.

1. Contact your bank straight away

   Call the genuine number on the back of your card or on your bank’s official website or app – not a number sent by text or email. Explain that you think you have been the victim of an APP scam and give full details of the payment.

   Your bank should:

   • try to stop the payment if it has not yet left your account
   • contact the receiving bank to ask for the money to be frozen
   • start a formal scam investigation.

2. Write down what happened

   While it is still fresh in your mind, note:

   • how the scammer first contacted you
   • what they said or sent
   • any website addresses, phone numbers or email addresses they used
   • why you believed them at the time.

   This detail can be important if the bank or Ombudsman later assesses whether you acted reasonably.

3. Report the scam

   Report the incident to the national fraud reporting centre and to the police if you have lost money. This may not get your money back directly, but it helps investigators build up intelligence on scams and in some cases supports future claims.

4. Beware of follow-up scams

   Fraudsters often target victims again by pretending to be from the bank, the police or even a refund company. Be very suspicious of anyone who contacts you out of the blue after a scam, especially if they ask for more money or remote access to your devices.

How long should a decision and refund take?

MoneyHelper and regulatory updates say that, under the new rules, most in-scope victims of APP fraud should now:

• receive an initial decision within a few days, and
• get any refund they are entitled to within around five working days of making their claim.

In more complex cases, it may take longer, for example where:

• multiple banks in different countries are involved
• the bank is investigating whether you were yourself involved in the fraud
• there is a dispute about whether the payment falls within scope.

If your bank takes an unreasonably long time to respond, or keeps giving holding replies without explaining what is happening, you can raise a formal complaint.

If your bank refuses to refund you

If you are told you will not be reimbursed, do not assume that is the end of the story. Independent guidance from Citizens Advice, MoneyHelper and legal commentators all stress that banks do not always get these decisions right.

You should:

1. Ask for a clear written explanation

   The bank should explain which rules it is relying on, why it thinks they apply and what evidence it has used. Keep all letters and emails.

2. Challenge any points you disagree with

   If the bank says you ignored warnings or that the scam was “obviously suspicious”, explain why you found it convincing at the time. Mention any factors that affected your judgement, such as stress, ill health or caring responsibilities.

3. Complain to the Financial Ombudsman Service

   If you are still unhappy after the bank’s final response, or if eight weeks have passed without a final decision, you can take your complaint to the Financial Ombudsman Service (FOS). This is a free, independent body that can order banks to refund you and pay compensation where they have treated you unfairly.

   The Ombudsman publishes case studies showing that it often upholds complaints where banks:

   • relied too heavily on “you authorised it”
   • did not give or record adequate warnings
   • failed to spot obvious signs of vulnerability
   • delayed unreasonably in handling the claim.

   You can complain online, by phone or by post. There are time limits – usually you must complain within six months of the bank’s final response – so do not delay.

How to reduce the risk of APP scams in the first place

Even with stronger reimbursement rules, prevention is better than cure. Regulators and consumer groups recommend simple habits to cut your risk:

• Treat all unexpected contact about money with suspicion – especially if it is urgent or threatens consequences.
• Never move money to a “safe account” on the say-so of a caller or message, even if they seem to know details about you or your account.
• Use confirmation of payee – if your bank shows that the account name does not match, stop and double-check.
• Type in website addresses yourself rather than clicking on links in emails or adverts.
• Use strong, unique passwords and two-factor authentication on banking and email accounts.
• Talk to someone you trust before making big transfers, especially for investments or property purchases.

Banks, telecoms firms and tech companies are under pressure from regulators and the media to do more to stop scams getting through in the first place, but criminals constantly adapt. Simple personal checks still make a big difference.

Key points to remember

• APP scams happen when you are tricked into authorising a payment yourself – in the past, refunds were hit and miss, but there is now a mandatory reimbursement regime for many Faster Payments.
• In most domestic bank transfer scams covered by the rules, your bank should now refund you, up to a cap per case, unless you were involved in the fraud or seriously ignored clear warnings.
• The rules only cover certain types of payment and customer, so some transactions – especially international transfers and some business payments – may still fall outside the scheme.
• You should report a scam to your bank as soon as possible, give full details, and then challenge any refusal you believe is unfair.
• If your bank will not change its mind, you can take your case to the Financial Ombudsman Service, which has the power to order refunds and compensation where banks have treated customers unreasonably.
• Stronger rules are good news, but they do not make it safe to relax. Staying cautious about unexpected payment requests is still one of the best protections for your money.

Knowing what the rules actually say – rather than relying on rumours or headlines – means that if the worst happens, you will know how to push for the refund you are entitled to, and when to escalate if your bank says no.