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Banking Scams and Fraud
The rules say banks must reimburse most bank transfer scam victims up to 85,000 pounds, usually within 5 business days of a claim, if the fraud is reported within 13 months. Whether your payment qualifies is for your bank to decide. If a payment was made without your permission, the rules say your bank should refund it by the end of the next business day. Tell your bank straight away.
At a Glance
Guide Disclaimer
This guide explains the published rules in plain English, with links to the official sources. We cannot tell you whether you are eligible for a refund, compensation or a successful claim. Nothing here promises that you will be paid. Whether you qualify depends on the facts of your own case and is decided by your bank, insurer or lender and, if you complain, the Financial Ombudsman Service. We give you the information and a letter to find this out for yourself.
CPUK is not authorised or regulated by the Financial Conduct Authority and is not a claims management company. We do not act for anyone, make claims for you or charge for this guide.
Your Rights
What the rules say, with a link to the official source for each.
Tricked into Paying (APP Scams)
The Reimbursement Scheme
If you were tricked into making a UK Faster Payments or CHAPS bank transfer (an 'APP scam'), the scheme covers payments made on or after 7 October 2024. It covers individuals, very small businesses and charities. source
Maximum Payout
The maximum reimbursement under the scheme is 85,000 pounds, although a firm may choose to pay more. You must report the fraud within 13 months of the payment, but you should report it as soon as possible. source
How Fast Your Bank Must Pay
Your bank should reimburse you within 5 business days of your claim. It can pause that clock while it gathers information, but it must reach a decision within 35 business days. source
The Excess
A bank may apply an optional excess of up to 100 pounds, or none. It cannot apply the excess to a vulnerable customer. source
When You May Not Be Reimbursed
You may not be reimbursed if you were complicit in the fraud or grossly negligent, which the Payment Systems Regulator says is a high bar. The gross negligence exception does not apply to vulnerable customers. source
Payments You Did Not Make
Unauthorised Payments
If a payment was made without your permission (an unauthorised payment), contact your bank within 13 months. The money should reach your account by the end of the next business day, together with any charges and interest you paid or lost because of the payment. source
When a Bank Can Refuse
A bank can refuse an unauthorised payment refund only if you authorised the payment, acted fraudulently, or failed to protect your card, PIN or password in a way that allowed the payment. If your card was lost or stolen and you did not report it, you may have to pay up to 35 pounds. source
Other Payments
Cards, Cash and Cheques
Card, cash and cheque payments have separate protections from the bank transfer scheme. For card payments, see the Section 75 and chargeback routes. source
Credit Card Claims
If you paid by credit card, you may also be able to claim from the card provider under Section 75 or through a chargeback. source
If Your Bank Refuses
Complaining to the Ombudsman
If your bank refuses or you are unhappy with how it handled a scam, you can complain to the bank and then to the Financial Ombudsman Service, which is free. Its compensation limit is 430,000 pounds, and it can look at cases where losses are over 85,000 pounds. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- 13 monthsReport an APP scam or unauthorised paymentWithin 13 months of the payment, but as soon as possible
- 5 business daysBank transfer scam reimbursementWithin 5 business days of your claim, up to 35 business days if the bank needs more information
- Next business dayUnauthorised payment refundBy the end of the next business day
- £85,000Maximum bank transfer scam reimbursement85,000 pounds, for payments from 7 October 2024
Where to Go If It Is Not Put Right
Free routes to escalate, and when each one applies.
Your Bank's Complaints Team
Always start here, in writing, once your bank has refused or not replied.
Financial Ombudsman Service
You are unhappy with your bank's final response. It is free, and its limit is 430,000 pounds.
Report Fraud (Police)
Report any scam. Your bank may also ask you to report it.
Card Provider: Section 75 or Chargeback
You paid by card and cannot get your money back from the seller.
Steps to Take
Step 1 of 7
Contact your bank straight away, using the number on the back of your card or on its website. Tell it you think you have been scammed, and ask for the payment to be stopped or recalled.
Step 2 of 7
Say clearly whether you were tricked into making the payment yourself or the payment was made without your permission, as different rules apply.
Step 3 of 7
Write down what happened: dates, amounts, account details you paid, and every message, call number and website involved. Keep screenshots.
Step 4 of 7
Report it to Report Fraud, or let your bank report it, and answer your bank's questions promptly after you have checked they are genuine.
Step 5 of 7
Make your claim in writing and keep a copy. Ask for the refund decision in writing.
Step 6 of 7
If your bank refuses or does not reply, make a formal complaint to the bank. If you are still unhappy, take it to the Financial Ombudsman Service.
Step 7 of 7
Tell your bank if you are vulnerable, for example because of illness, bereavement or a life event that made you more open to the scam.
(Tap the numbers to reveal steps)
Evidence and Your Letter
Gather your evidence, then build a letter you can send in minutes. This is a template you send yourself. It does not confirm that you are owed anything.
Evidence Checklist
0 of 6 gatheredTap each one when you have it.
CPUKLetter Generator
How This Works
- 1
Tick off the evidence you already have, and see what is still missing.
- 2
Answer the letter questions. Your answers fill in the wording for you.
- 3
Copy or download the letter, check every detail, and send it yourself.
A template, not legal advice.
Watch Out For
Common traps and scams to avoid.
Calls, texts or emails claiming to be your bank, the police or a delivery company, saying your money is at risk and you must move it to a 'safe account'. Your bank will never ask you to do that. Hang up and call your bank on a number you trust.
Pressure to act quickly, or to keep the call secret from your bank. Real banks do not do this.
Being asked to install software that lets someone see your screen. Never allow it.
Fake investment, romance or invoice scams that ask you to pay by bank transfer. Check who you are paying before you send money.
'Recovery' companies that charge a fee to get your money back. Your bank and the Financial Ombudsman Service are free.
Recent or changing rules: tap to read
Checked 8 October 2026 against the Payment Systems Regulator's APP fraud reimbursement page and the FCA's fraudulent payments page. The scheme applies to Faster Payments and CHAPS payments made on or after 7 October 2024 and does not cover card, cash or cheque payments, or credit unions and some other institutions. Firms may pay more than 85,000 pounds. Rules on how banks assess vulnerability, and any later changes to the limit or exceptions, were not checked beyond those pages. Card chargeback rules and Section 75 details are general and should be checked. Review again by January 2027.
Want Help?
If you would like one of our team to look at your problem, our initial case review is free. We cannot guarantee any outcome and we do not give legal advice.
Not sure where you stand? Try our action plan tool or the free letter templates.
Sources and official links
- psr.org.uk/information-for-consumers/app-fraud-reimbursement-protections/ Checked 8 October 2026
- fca.org.uk/consumers/fraudulent-payments Checked 8 October 2026
- reportfraud.police.uk/ Checked 8 October 2026
- citizensadvice.org.uk/consumer/somethings-gone-wrong-with-a-purchase/getting-you Checked 8 October 2026