Scammed into a bank transfer: when the bank must refund you, and how much — up to £85,000

You were tricked into transferring money to a "safe account", a fake investment or a bogus seller — and you made the transfer yourself. This is the biggest type of fraud in the UK, APP (authorised push payment). The bank used to shrug: you authorised it, after all. Since 7 October 2024 it is different — by law the bank must give the money back. Here is who qualifies, how much and how fast.

The new rule: the bank must reimburse

Since 7 October 2024 the UK has mandatory reimbursement for victims of APP fraud. It applies to payments made on or after that date. The key change from before: refunding the money is no longer the bank's goodwill but its duty, and the cost is split equally between the sending and the receiving bank.

Who is protected

The rule protects individuals, microenterprises and charities — not only personal accounts but small businesses too.

How much, and how fast

The maximum reimbursement is £85,000 per claim; the bank may choose to pay more. If your loss is larger than the cap, you can pursue the rest through the Financial Ombudsman Service, which has a £430,000 limit. The money should be returned within 5 business days of your claim. If the bank asks you for more information it can "stop the clock", but it must reach a decision within 35 business days.

The deadline is 13 months

You must claim within 13 months of the fraudulent payment. But do not wait: report the fraud to the bank as soon as you notice it — that is both your chance to stop the money and a condition of a fast refund.

An excess of up to £100

The bank may keep an optional excess of up to £100 per claim. It does not have to apply it, and it cannot be applied to vulnerable customers at all.

What is covered, and what is not

The rule covers UK transfers made over Faster Payments and CHAPS, including transfers between accounts at the same bank. It does NOT cover card payments, cash, cheques, international transfers, cryptocurrency, payments to your own account, or claims made after 13 months. Credit unions, municipal banks and national savings banks are outside the scheme.

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When the bank can refuse

There are two grounds for refusal: if you were complicit in the fraud, or if you were grossly negligent. The bar is high, and it is the bank, not you, that must prove negligence. The exception does not apply to vulnerable customers. Simply being trusting is not gross negligence — scammers are professionals, and the law recognises that.

What to do if you are scammed

Phone the bank at once and report the fraudulent transfer — the sooner you do, the better the chance of stopping the money. Ask for reimbursement under the APP rule. Report the fraud to Action Fraud. If the bank refuses or misses the deadlines, complain to the Financial Ombudsman Service — it is free.

What if the payment was before 7 October 2024?

The new mandatory rule does not apply to payments before that date. For them the earlier voluntary CRM Code (Contingent Reimbursement Model), in force since 28 May 2019, applies — a refund is possible under it, but not as firmly guaranteed.

In short

Since 7 October 2024 the bank must refund a victim of APP fraud: up to £85,000 per claim, within 5 business days (a decision within 35 at most), and you can claim within 13 months. Faster Payments and CHAPS transfers within the UK are covered; cards, crypto and international transfers are not. Refusal is only for complicity or gross negligence, and the bank must prove it. Tell the bank immediately; if refused, go to the Financial Ombudsman.