Bank transfer scams: how refunds work under the £85,000 rules
Published · 3 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
If you are tricked into sending money to a fraudster by bank transfer, rules in force since October 2024 can require your bank to refund you. This guide explains the limit, the time limit, the excess and where to get help.
What an authorised push payment scam is
An authorised push payment (APP) scam is where someone is tricked into sending money to a fraudster's bank or payment account. You make the payment yourself, so it is called authorised, but you were deceived about who you were paying or why. Examples include a fake invoice, a call from someone pretending to be your bank, or a made-up investment.
The refund rules
For payments made by Faster Payments or CHAPS on or after 7 October 2024, the Financial Ombudsman Service and the FCA both say the payer's bank or payment provider must refund up to £85,000 if the rules apply.
- A provider might not refund if it can prove you acted with gross negligence. The Financial Ombudsman Service says this is much more than not being careful, and it is up to the firm to prove it.
- If you were particularly vulnerable to that type of scam, the provider must refund you if the rules apply.
- A provider can refuse if it can prove you were involved in the fraud.
Other kinds of payment
- Payments between 28 May 2019 and 7 October 2024 may be covered if your bank signed up to the voluntary Contingent Reimbursement Model Code.
- Card payments: you may be able to claim through chargeback. For credit card purchases, a Section 75 claim may apply to items costing more than £100 but less than £30,000.
- Direct Debit: the Direct Debit Guarantee should give a full refund.
What people usually do first
Many people start by contacting their bank straight away, using the number on their card or statement rather than one a caller gave them. The FCA also lists reporting the scam to the police on 101 and to Report Fraud on 0300 123 2040. In Scotland, Police Scotland and Advice Direct Scotland can help. Keeping messages, call records, invoices and a timeline can help any later complaint.
If you are unhappy with the outcome
You can complain to the provider first. The Financial Ombudsman Service says the firm must get back to you within 15 days and then send a response within 35 days. If you are still unhappy, you can take the complaint to the Ombudsman. It can look at how your bank handled the scam, including the bank that received the money. It will also look at payments the refund rules do not cover, or losses above £85,000. It is free to use.
Scams are upsetting and anyone can be caught out. Free guidance is available from MoneyHelper and Citizens Advice.
Check before you act
Limits, time limits and rules can change. Please confirm the details on the official pages linked below before making any decision.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
