Bank transfer scams — how to get your money back.

Bank transfer scams are the largest category of UK fraud by value. Since 7 October 2024, if you sent the money from a UK account, the default position is that you get it back. Here is how.

Will my bank refund a bank transfer scam?

In almost all cases, yes. Since 7 October 2024 the Payment Systems Regulator’s Mandatory Reimbursement Scheme requires UK banks to refund victims of bank-transfer (APP) fraud up to £85,000 per claim, unless the bank can prove you acted with gross negligence. The receiving bank pays half the cost. The default outcome of a properly filed claim is reimbursement.

How long do I have to claim?

You have 13 months from the date of the last fraudulent payment to bring the claim to your bank under the PSR scheme. If the bank refuses, you have a further six months from the bank’s final response letter to escalate to the Financial Ombudsman Service.

What if the receiving bank cannot recover the funds?

It does not matter for your refund. The PSR scheme places the reimbursement obligation on your sending bank, which pays you regardless of whether the funds can be recovered from the recipient. Recovery is a problem for the banks to share between themselves.

I sent the money to the right name. Does that count against me?

Not necessarily. Confirmation of Payee tells you whether the account name matches what you typed — if the scammer used the genuine company name as the payee, the check will pass even though the account itself belongs to a fraudster. CoP is a useful warning when it triggers; it is not a confession of negligence when it does not.

Can I claim if I sent multiple payments?

Yes. The 13-month deadline runs from the last fraudulent payment, and the £85,000 cap applies per claim, not per payment. A series of related fraudulent payments is normally treated as a single APP fraud claim.

What if I sent money internationally or by card?

International payments are out of scope of the PSR scheme — but your bank may still refund under its own goodwill policy or under the Financial Ombudsman’s “fair and reasonable” jurisdiction. Card payments may be claimable under chargeback or, for purchases between £100 and £30,000, under Section 75 of the Consumer Credit Act 1974.

UK guide to recovering money lost to bank transfer scams. The PSR Mandatory Reimbursement Scheme requires banks to refund APP fraud victims up to £85,000.

How to claim a refund for a bank transfer scam

Report to your bank immediately

Call the 24/7 fraud line on the back of your card and say the words "authorised push payment fraud". Ask the bank to attempt a recall and get a case reference number.

File a PSR reimbursement claim

Follow up in writing the same day citing the PSR Mandatory Reimbursement Scheme. The bank has five working days to reimburse you or explain why not.

Get the bank's final response letter

If the bank refuses or takes longer than eight weeks, it must issue a final response letter setting out its reasons and your right to escalate.

Escalate to the Financial Ombudsman Service if refused

Within six months of the final response letter, refer the case to the FOS. The service is free, independent, and binding on the bank if you accept the decision.

Scam Refund · Scam Types

Bank transfer scams — how to get your money back.

What counts as a bank transfer scam

The legal term is Authorised Push Payment (APP) fraud, but it is simpler than it sounds: you sent the money, but only because someone tricked you into it. The most common version is the impersonation scam — a call or text from someone pretending to be your bank, the police, or HMRC, telling you your money is at risk and asking you to move it to a “safe account.” Other versions include fake invoices (a real-looking supplier invoice with the bank details swapped), fake refunds, and account takeover where a scammer intercepts a genuine supplier’s email.

The cover story varies. The legal category does not. You sent the money. The instruction was authorised. But the authorisation was procured by fraud — and that puts your case inside the PSR Mandatory Reimbursement Scheme.

The PSR scheme in plain terms

From 7 October 2024, any UK bank that sends a Faster Payment or CHAPS on your instruction must refund you if the payment turns out to have been APP fraud. The cap is £85,000. The bank has five working days to pay or write to you explaining why it will not. The receiving bank pays half the cost. The bank can only refuse on one ground — gross negligence on your part — and it has to prove that.

What you need to show

The bar is intentionally low. You sent the money in good faith. You have been defrauded. You reported it to the bank within 13 months, and to Action Fraud or Police Scotland for a crime reference number. That is the core of the case. After that the burden shifts to the bank to investigate and either refund or prove gross negligence.

Good evidence speeds everything up: original messages, screenshots of the website or social media that led you in, copies of any fake invoices, bank statements, a chronology. Missing evidence is the single biggest reason claims get delayed or refused. Edited evidence is the second. Keep originals and do not annotate them.

What “gross negligence” actually means

It is the only defence the bank has, and the PSR has set the bar deliberately high. Being trusting is not gross negligence. Being persuaded by a convincing script is not gross negligence. Acting under pressure from someone claiming to be your bank is not gross negligence. Even ignoring an in-app warning is not automatically gross negligence — the warning has to have been specific, prominent, and relevant to the scam.

What might cross the line: ignoring a Confirmation of Payee mismatch warning at the moment of payment; continuing to send money after your bank has identified the recipient as part of a known scam; or giving false information to the bank or the Ombudsman. Vulnerable consumers cannot be denied a refund on gross-negligence grounds at all.

The Confirmation of Payee question

Confirmation of Payee checks whether the account name you entered matches the destination account. Banks have tried to argue that ignoring a CoP warning amounts to gross negligence. The PSR has not accepted that as a blanket rule. CoP only catches a fraction of frauds — if the scammer opens an account in the genuine company’s name, the check passes. Whether a specific CoP warning matters is always fact-specific.

A refusal must come in a final response letter under FCA DISP rules. From that date you have six months to take the case to the Financial Ombudsman Service — free, independent, and binding on the bank if you accept its decision. The Ombudsman applies a “fair and reasonable” test and is not bound by the bank’s reasoning. A successful award covers your principal loss, interest at 8% simple per year from the date of loss, and compensation for distress and inconvenience.

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Not legal advice. This guide is for general information only. For advice specific to your circumstances, consult a regulated legal professional or contact Citizens Advice.