If you have been scammed, one of the first questions you will ask is whether your bank will give your money back. It is a completely reasonable thing to want to know, and the answer is more hopeful than many people expect.
Over £1 billion was stolen through fraud in the UK in 2024. You might assume that your bank will not refund you, but this is not always the case. This article explains whether banks refund scammed money, how the rules introduced in October 2024 work, and what you can do if your claim is refused. If your bank has rejected your claim or failed to protect you, read on to find out how CEL Solicitors can help.
What is a Scam?
Scams come in many forms, and it can often be difficult to spot them as methods used by fraudsters are becoming more sophisticated.
Some of the most common scams include:
Romance scams: Scammers form fake romantic relationships online to manipulate victims into sending money.
Investment scams: Fraudsters promise high returns on investments that do not exist.
Purchase scams: Fake sellers trick victims into paying for goods or services that never materialise.
Impersonation scams: Scammers pose as bank representatives, police officers, or utility providers to convince you to transfer money or share sensitive details.
If you have fallen victim to any of these scams, it is important to report the fraud to your bank as quickly as possible. Not sure what to do next? Read our guide on what to do if you have been scammed.
Will My Bank Refund My Scammed Money?
Under rules that came into force on 7 October 2024, UK banks, building societies, and payment providers are required to refund most victims of authorised push payment (APP) fraud. APP fraud is when a scammer tricks you into sending money directly from your bank account to theirs.
In the first three months of the new rules being in force, 86 per cent of money stolen through in-scope APP fraud was returned to victims. That is a significant improvement on what came before.
The Payment Systems Regulator (PSR) introduced these rules to ensure fairer treatment of scam victims. Previously, banks assessed cases individually and refunds were not guaranteed. Now, all banks must refund eligible victims, provided they have not acted with gross negligence.
What is gross negligence?
Gross negligence is a high legal standard. It means you would have had to act in a way that was so unreasonably reckless that it goes well beyond simply being deceived. Ignoring a specific and clear warning from your bank while making a payment, for example, could constitute gross negligence. Simply being tricked by a sophisticated scammer does not.
If your bank is using gross negligence as a reason to refuse your claim, it is worth challenging that decision. Banks do not always apply this standard correctly, and a refusal on these grounds can often be overturned.
Refund statistics
APP fraud losses in the UK fell slightly in 2024 to £450.7 million, with the number of cases dropping by 20 per cent to under 186,000, the lowest figure since 2020. Despite this progress, hundreds of millions of pounds are still being lost every year, and not every victim receives the refund they are entitled to.
How Long Will It Take to Get a Refund?
Banks are required to reimburse eligible scam victims within five working days of being notified about the fraud. The process generally works as follows:
Report the fraud. Notify your bank immediately about the scam. Most banks have dedicated fraud teams available 24 hours a day.
Investigation. The bank will investigate the details of the fraud to determine eligibility for a refund.
Refund decision. If eligible, you should receive your refund within five working days. In complex cases, banks can extend this to a maximum of 35 working days, but they must keep you informed throughout.
Appeal. If your bank rejects your claim, you have options. You can escalate to the Financial Ombudsman Service for free, or seek legal help from a specialist firm like CEL Solicitors.
Do Banks Recover Money from Scammers?
In some cases, banks can recover money from scammers, but this is often challenging. Once the money has been transferred, fraudsters quickly move it through multiple accounts or withdraw it, making it harder to trace.
However, banks do have tools to attempt recovery, including:
Recalling payments. Banks can contact the receiving bank to freeze the funds before they are moved.
Collaboration with law enforcement. Banks may work with the police or fraud agencies to trace and recover stolen money.
This is why reporting the fraud to your bank as quickly as possible is so important. The faster they are alerted, the better the chance of recovering funds before they are moved on.
Can I Claim All My Scammed Funds Back?
The maximum reimbursement under the mandatory rules is £85,000, which the PSR says covers over 99 per cent of claims. Individual banks may choose to reimburse more than this at their own discretion.
If your losses exceed £85,000 and your bank does not voluntarily cover the full amount, you can refer your case to the Financial Ombudsman Service, which has a compensation limit of £430,000.
If you have been scammed, report the incident to your bank immediately and provide as much evidence as possible to support your claim.
How Do I Make a Claim?
If you have been scammed, follow these steps to make a refund claim with your bank:
Contact your bank. Notify them about the scam as soon as possible. Most banks have dedicated fraud teams available 24 hours a day.
Provide evidence. Gather all relevant evidence, including emails, texts, screenshots, and transaction details.
Complete a claim. Your bank will guide you through the claims process, which may include filling out forms and answering questions about the incident.
Follow up. Keep track of your case and follow up with your bank if you do not hear back within five working days.
What if My Bank Rejects My Claim or Failed to Safeguard Me?
A refusal from your bank is not the end of the road. Banks must protect customers by identifying suspicious transactions, issuing scam warnings, and preventing fraud wherever possible. If they have failed in these responsibilities or applied the gross negligence standard incorrectly, you may have grounds for further action.
Your options are:
The Financial Ombudsman Service. If your bank refuses your claim or does not respond within eight weeks, you can refer your case to the Financial Ombudsman Service for free. They will look at your case independently and can overturn your bank’s decision.
CEL Solicitors. If your bank has let you down, we can review your case and manage the entire process on your behalf.
How CEL Solicitors Can Help
At CEL Solicitors, we specialise in helping scam victims reclaim funds that their banks have refused to return. We have recovered over £100 million for victims of fraud, and we work on a no-win, no-fee basis, which means there is no financial risk to you in finding out whether you have a case.
Expert case review. We will assess your case to determine whether your bank failed to protect you or unfairly rejected your claim.
Claims management. Our experienced team will manage the entire claims process, negotiating with your bank to secure the refund you are entitled to.
No win, no fee. You do not pay unless we successfully recover your funds.
You are not alone. If you have been scammed and your bank has refused to help, just tell CEL. We listen, we care, we win.
Frequently Asked Questions
Do banks have to refund scammed money in the UK? In most cases, yes. Under APP fraud reimbursement rules that came into force in October 2024, UK banks are legally required to refund eligible victims of authorised push payment fraud up to £85,000. There are exceptions, such as cases involving gross negligence, but for most victims who were genuinely deceived, a refund should be available.
How long do banks take to refund scammed money? Banks are required to reimburse eligible victims within five working days of the fraud being reported. If they need more time to investigate, they can extend this to a maximum of 35 working days.
What if my bank says I acted with gross negligence? Gross negligence is a high legal standard that goes well beyond simply being deceived. If your bank has used this as a reason to refuse your claim, it is worth challenging their decision. CEL Solicitors can review your case and advise whether the refusal is justified.
What if my bank refuses to refund me? A bank refusal is not final. You can escalate your complaint to the Financial Ombudsman Service for free, or seek legal help from a specialist like CEL Solicitors. We work on a no-win, no-fee basis.
What if I sent money via bank transfer to a scammer? Bank transfers made via Faster Payments or CHAPS are covered by the APP fraud reimbursement rules. Contact your bank immediately to report the fraud and request a refund under the mandatory reimbursement scheme. You can also read our guide on how to get your money back after a scam.
How much can I claim back from my bank after being scammed? The maximum reimbursement under the mandatory rules is £85,000. If your losses exceed this amount, you may be able to take the matter to the Financial Ombudsman Service, which has a compensation limit of £430,000.
