Falling victim to a scam can feel overwhelming—you’ll probably feel anxious, frustrated, and stressed about the entire process. You might also be worried about whether UK banks refund scammed money, for example. The good news is you’re not alone—approximately 18% of adults in the UK have lost money to such scams.
At Remitly, we know how much peace of mind matters when you’re in this situation. In this guide, you’ll find out more about fraud refunds, scam protection, and what you can do if you fall victim.
Do UK banks refund scammed money? It depends.
Banking in the UK is strictly regulated, with many of the rules focusing on looking out for the consumer. This is how most people benefit from fraud protection in the country, but the exact outcome can depend on the kind of scam you fall victim to. Let’s break down the various types.
Unauthorised transactions
Unauthorised transactions are when funds are taken out of your account without your consent. This could be when a hacker uses stolen card details and makes purchases for themselves through your account. These are covered under Payment Services Regulations 2017, which mandates that banks make only execute transactions that are properly authorised.
This means banks refund scammed money taken this way. This must be done by the end of the following business day, so you shouldn’t have to wait around for long.
Authorised Push Payment (APP) scams
Authorised push payment scams are when you’re fooled into sending the money yourself. This happens in multiple ways, like fake invoices and impersonations. Given how complicated and believable these can be these days, they’re easy to fall for.
Banks who’ve signed up for the Contingent Reimbursement Model (CRM) Code have made a commitment to refund blameless victims of these scams. While most banks fall under this umbrella, it doesn’t mean all of them have—check to see if your bank has made the commitment for greater peace of mind.
These scams usually prompt a fraud investigation before you can get your money refunded. Based on the CRM Code, you should get your money back within 15 days, though for more complicated investigations, this can go up to 35 days. In any case, whether you get your money back depends on the investigation finding that you took reasonable care to prevent being scammed.
Types of fraud protection available
Chargeback protection
Chargeback protection is one of the easiest ways to get your money back when you’ve been scammed, as long as you’ve used a credit or debit card. It lets you dispute a charge on your account and request a reversal through your bank. This is primarily used when you’ve paid for goods or services, but they were never delivered.
If you bought tickets to a concert through a website and they never arrived, for example, you can ask your bank to request a reversal. You’ll have up to 120 days to request this—anything after that isn’t likely to be refunded.
Section 75 protection (credit cards)
Section 75 of the Consumer Credit Act 1974 is one of the most powerful tools at your disposal to get fraud refunds. It covers frauds or breaches of contract between £100 and £30,000 and makes both the merchant that defrauded you—or simply failed to deliver—and the credit card company jointly liable. There are several examples of when you might need to use this.
Let’s say you bought a laptop online for £1,500. Should the laptop not be delivered—or turn out not to be the product you were told you were buying, and they’re refusing a return—you can use Section 75 to claim a refund directly from your card provider. There’ll often be some form of investigation when this happens, so the refund might be slightly delayed.
Bank transfer fraud protections
Your bank fraud policy may offer you various protections against being scammed. These tend to be weaker than Section 75 and chargeback protection, but they can still be worth looking into.
No matter who you bank with, though, it’s possible your fraud claim will be denied if the bank suspects negligence on your side—be mindful of this ahead of time and don’t hand over sensitive data to anybody you’re not absolutely sure about.
You should be able to appeal denial through your bank if you believe you were as careful as can reasonably be expected. If you still get no luck, and you want to take things further, you can file a complaint with the Financial Ombudsman Service. If they find in your favour, you should then get a refund for the amount you lost in the scam.
What to do if you’ve been scammed
Being scammed is an overwhelming and unexpected experience, which can make figuring out what to do next uncertain. You need to act quickly once you realise you’ve been scammed.
Immediate steps (first 24 hours)
The first 24 hours are crucial. The first step is to contact your bank through their official channels to inform them that a fraudulent charge or scam has occurred. They’ll tell you what steps they need you to take. If you’re concerned your account has been hacked, you should ask your bank to freeze any transactions.
Keep any evidence you might have of the scam. This includes any messages, emails, and screenshots you have. The more of this you have, the better of a chance you’ll be able to prove you were the victim of a scam.
Follow-up actions
Consider contacting Action Fraud, too. They’re the UK’s national fraud reporting service; they’re not investigators, so they can’t help you resolve your case, but they pass the details on to the police and they’re working toward protecting people from phishing, scams and other cyber crimes.
Reporting the scam to the platform where it started, like Facebook Marketplace or eBay, is another possible step to take. This could help get the scammer shut down, so you could protect other people from falling victim to the same fraudster as you.
How to strengthen your case for a refund
As we’ve mentioned, banks will look at your actions when they’re conducting a fraud investigation, and you need to be sure you have a strong claim to make sure you’re refunded. It might vary between bank to bank and case to case, but there are a few common areas to focus:
- Show that you weren’t grossly negligent, so you didn’t knowingly share your PIN code, debit card details or online banking details with scammers.
- Provide as much evidence as possible you followed best practice security precautions.
- Highlight how sophisticated the scam was, whenever possible.
- Document any attempts you made to verify the fraudster was who they said they were.
While these wouldn’t guarantee your money is refunded, they’ll give you the best chance.
Prevention tips to avoid future scams
Scamming is an arms race; banks and financial institutions continue to beef up security and keep their customers informed, but the scams continue to evolve, which is why falling for them is still quite common. Tech has also made it easier for criminals, but by knowing what to look out for, you decrease your chances of falling for them.
The first thing is knowing about the most common types of scams out there, like:
- Impersonation scams
Scammers pose as someone from a position of authority, like your bank, or someone you might know. - Investment scams
Fake investment opportunities that boast a high potential for profit for early investors. - Romance scams
Fraudsters pose as other people and nurture an online relationship, eventually asking for money, often for apparent emergencies. - Purchase scams
Fake sellers on platforms on eBay that sell either knock-off products or items that never arrive.
Common red flags
Of course not every investment offer or online dating opportunity you come across will be a scam, but be on the lookout for red flags. These give you a greater idea of whether someone’s trying to scam you. They include:
- Pressuring you to send money as quickly as possible.
- Repeated requests to move money to a “safe account” for investments.
- Poor spelling or grammar in emails or messages.
- Deals that seem too good to be true.
- Asking you not to tell friends or family about the offer, or their request for your details.
Keeping an eye open for these should cut your chances of being scammed. There’s plenty more advice and information out there to help you avoid unauthorised transactions and similar fraud techniques, and a lot of it is about preventative measures;
- Verify merchants or financial institutions through official phone numbers and similar channels.
- Use credit cards for larger purchases to benefit from Section 75 scam protection.
- Enable two-factor authentication on your online accounts.
- Double-check payment details before you transfer any funds.
While these aren’t foolproof, they should help you dramatically decrease your chances of falling for a scam.
You’re not alone: banks are there to help
If you’re the victim of financial fraud, remember that you’re not alone, and it’s likely not your fault—it happens more than many consumers realise. You also have steps to recover your money. Most banks refund scammed money if you’ve done your part to protect yourself, and you’ll have several tools at your disposal; UK law does at least provide strong protections for victims of these crimes.
The trick here is following the security protocols before the fraud, and persistence afterwards, if the worst does happen. It might take time to get fraud refunds—depending on your bank’s fraud policy—but providing you’ve done your part, there’s no reason you shouldn’t recover your money.FAQs
How long do banks take to refund fraud?
For unauthorised transactions, this usually takes one business day. For APP scams, this can take up to 15 days, depending on how long the investigation takes.
What if my bank won’t refund a scam?
You can appeal to your bank, though this can be rejected, too. If that happens, you can escalate it to the Financial Ombudsman Service, which usually rules in favour of consumers.
Do banks refund authorised push payment (APP) scams?
In most cases, yes. At least, that’s the case if your bank is signed up to the Contingent Reimbursement Model (CRM) code, and you can prove you took reasonable care to prevent fraud. In the cases of gross negligence, the refund may be denied.
Can I get my money back if I was scammed on a credit card?
This is often one of the easier ways to get your money back, as long as you’ve been defrauded out of between £100 and £30,000. This is covered under Section 75 of the Consumer Credit Act, and you should be protected from breaches of contract or misrepresentation under this law. For payments under £100, you may still be able to recover your money through your card issuer’s chargeback scheme.