Fraud & Scams

Authorised versus unauthorised payments

Your rights depend first on whether a payment was authorised or unauthorised. An unauthorised transaction is one you did not make or approve — for example your card details used by a fraudster. An authorised push payment (APP) scam is where you were tricked into sending the money yourself, believing it was going to a genuine person or company. Before you pay a company or person you do not know, you can check the firm is genuine and authorised.

For unauthorised transactions you are generally entitled to a refund from your bank unless it can show you acted fraudulently or with gross negligence, so report them immediately. Authorised scams, where you sent the money yourself, are covered by a separate reimbursement scheme.

The APP scam reimbursement scheme

Since 7 October 2024, banks and payment firms must reimburse most victims of APP scams made using Faster Payments — the system behind most everyday bank transfers. Most victims are repaid within five business days, and the cost is shared equally between the bank that sent the payment and the one that received it.

• Applies to Faster Payments (and CHAPS) sent on or after 7 October 2024
• Maximum reimbursement is £85,000 per claim
• Your bank may apply an excess of up to £100, and offers extra protection to vulnerable customers
• You normally have 13 months from the payment to make a claim

When you might not be reimbursed

Reimbursement is not automatic in every case. You can be refused if you ignored a specific, clear warning from your bank or failed to take reasonable care — a “consumer standard of caution” that does not apply to customers who are vulnerable — or if you were involved in the fraud yourself. The scheme also does not cover payments you make to your own accounts, most international transfers, or scams where you paid by a method other than a covered bank transfer.

How to report and claim

Contact your bank as soon as you realise something is wrong — acting fast can help stop or trace the money. Report the scam to Action Fraud (or Police Scotland in Scotland), and keep records of everything: messages, payment details and any correspondence. If your bank refuses to reimburse you and you disagree, you can complain and take it to the Financial Ombudsman Service free of charge. If the loss has left you struggling financially, you can also get free debt advice.