Yes — in most cases, UK banks do refund scammed money, though how much you get back and how quickly depends on the type of fraud involved. If money was taken from your account without your knowledge, the Payment Services Regulations 2017 require your bank to refund you by the end of the next business day. If you were tricked into sending the money yourself, in what’s known as an authorised push payment (APP) scam, the Payment Systems Regulator’s (PSR) mandatory reimbursement rules mean you’re entitled to a refund of up to £85,000, split equally between your bank and the receiving bank. We know how unsettling it feels to discover you’ve been scammed, and Remitly wants to help you understand your options as quickly as possible.
Quick answer: Yes — UK banks are required to refund authorised push payment (APP) fraud victims under the Payment Systems Regulator’s mandatory reimbursement rules, in force since 7 October 2024, up to a cap of £85,000. Refunds for unauthorised transactions, where you didn’t make the payment yourself, must be made by the end of the next business day.
Do UK banks refund scammed money?
Most banks in the UK are required to refund victims of financial fraud, but the exact rules depend on how the money left your account. There are two main categories: unauthorised transactions, where someone else moved money without your permission, and authorised push payment (APP) scams, where you were deceived into making the transfer yourself.
Until October 2024, APP scam refunds were governed by a voluntary code — the Contingent Reimbursement Model (CRM) Code — which some banks chose not to sign up to, leaving gaps in cover. That voluntary approach has now been replaced. The Payment Systems Regulator’s mandatory reimbursement rules mean nearly all UK banks and payment providers must reimburse eligible APP scam victims, up to £85,000 per claim, a cap the PSR confirmed remains current for 2026.
UK Finance’s Annual Fraud Report 2025 found that APP scams cost victims £450.7 million in 2024. In the first three months under the new mandatory rules, 86% of money lost to in-scope APP fraud was returned to victims — a marked improvement on the roughly 59% reimbursement rate seen under the old voluntary code.
The PSR mandatory reimbursement rules: what changed in 2024
From 7 October 2024, the Payment Systems Regulator made reimbursement mandatory for in-scope APP fraud sent by Faster Payments and CHAPS, replacing the voluntary CRM Code entirely. Authorised push payment scams are when you’re fooled into sending the money yourself. The new rules shift much more of the responsibility for prevention and reimbursement onto banks and payment providers. The key points are:
- Sending and receiving banks split the cost of reimbursement 50/50, so the bank that received the fraudulent payment shares responsibility with your own bank.
- A firm can refuse reimbursement only where it can show you acted with gross negligence — the burden of proving this sits with the bank, not with you.
- Most claims are settled within five business days, though a firm can extend this to up to 35 business days if it needs more time to investigate.
- An optional excess of up to £100 may apply, but this cannot be charged to customers considered vulnerable.
- The rules apply only to UK-to-UK Faster Payments and CHAPS transfers. If you’re sending money abroad, different protections apply — our guide to money transfer scams covers what to look out for when transferring internationally.
Unauthorised transactions: Payment Services Regulations 2017
Unauthorised transactions are when funds are taken out of your account without your consent. This includes card fraud and cases where a scammer has gained access to your online banking. Under the Payment Services Regulations 2017, your bank must refund you by the end of the next business day after you report the transaction, unless it can show you were grossly negligent, for example, by sharing your PIN or full banking password. As with APP fraud, the burden of proving negligence sits with your bank, not with you.
Section 75 of the Consumer Credit Act 1974
Section 75 of the Consumer Credit Act 1974 gives you a claim against your credit card provider, as well as the retailer, for purchases between £100 and £30,000. This applies only to credit cards — not debit cards, bank transfers, or buy-now-pay-later agreements — and can still succeed even if the retailer has since gone out of business. If you used a credit card for a larger purchase and something went wrong, this route is often worth exploring alongside, or instead of, a claim against your bank.
Chargeback protection
Chargeback is a process run by card schemes such as Visa and Mastercard, rather than a legal right set out in statute. It lets you ask your card issuer to reverse a payment and generally needs to be requested within 120 days of the transaction. Chargeback can apply to both debit and credit cards, which makes it useful for smaller purchases. For credit card purchases over £100, Section 75 generally gives you stronger, statutory protection, so it’s worth checking whether that route applies before relying on chargeback alone.
What to do if you’ve been scammed: steps to take immediately
If you think you’ve been scammed, acting within the first 24 hours can make a real difference to your chances of getting your money back. Here’s what to do:
- Contact your bank straight away, using the number on the back of your card or its official app — never a number given to you by the suspected scammer.
- Ask your bank to freeze your account or card if you think someone else has access to it, and raise a formal fraud claim.
- Keep any evidence you might have of the scam. This includes any messages, emails, and screenshots you have.
- Report the scam to Action Fraud, the UK’s national reporting centre for fraud and cybercrime.
- If the scam happened through a website, app, or social media platform, report it there too — this can help get the account or listing taken down.
- If your bank refuses to refund you and you disagree with its decision, you can escalate your complaint to the Financial Ombudsman Service.
For a fuller walkthrough of each step, see our guide on what to do if you’ve been scammed.
How to build a strong case for a refund
Whether your bank ultimately refunds you often comes down to the evidence you can show. Under the PSR’s rules, the burden of proving gross negligence sits with the bank, not with you — but building a clear record still helps your case:
- 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.
One useful piece of evidence is Confirmation of Payee (CoP), the check that confirms whether the name on an account matches the person or business you’re paying. If CoP flagged a mismatch and you went ahead anyway, it’s worth being upfront about that; if it confirmed a match and you were still scammed (as can happen with elaborate cases like romance scams) that supports your case. Simple habits, such as using two-factor authentication on your banking apps, also show you took reasonable precautions. None of this would guarantee your money is refunded, but it puts you in a stronger position if your bank needs convincing.
FAQs
Do UK banks have to refund scammed money?
In most cases, yes. Since 7 October 2024, banks must reimburse victims of authorised push payment scams under the Payment Systems Regulator’s mandatory rules, up to £85,000. For unauthorised transactions, where you didn’t make the payment yourself, banks must refund you by the end of the next business day.
How long does it take to get a refund after being scammed?
Most authorised push payment claims are settled within five business days, though your bank can extend this to up to 35 business days if it needs more time to investigate. Unauthorised transactions must be refunded by the end of the next business day after you report them.
Is there a maximum amount I can claim back?
Yes. The Payment Systems Regulator’s cap for authorised push payment scams is £85,000 per claim. If your loss is higher, or your bank rejects your claim unfairly, you can escalate to the Financial Ombudsman Service, which can award up to £430,000.
What can I do if my bank refuses to refund me?
You can ask your bank to explain its decision in writing, then escalate the complaint to the Financial Ombudsman Service if you disagree. The Ombudsman is free to use and independently reviews cases where a bank has denied a claim.
Does Section 75 cover online purchases?
Yes. Section 75 of the Consumer Credit Act 1974 applies to credit card purchases between £100 and £30,000, including those made online, and can succeed even if the retailer has since gone out of business. It doesn’t apply to debit cards or bank transfers.
Are bank transfer scams covered by the mandatory reimbursement rules?
Yes, if the transfer was sent via UK Faster Payments or CHAPS and you were tricked into authorising it yourself. This is known as an authorised push payment scam, and it’s covered by the PSR’s mandatory rules, subject to the £85,000 cap.
Are international money transfers covered by the same refund rules?
No. The PSR’s mandatory reimbursement rules apply only to UK-to-UK Faster Payments and CHAPS transfers. If you’re sending money abroad, check the specific protections offered by your provider, as international transfers generally follow different rules.
Key takeaways
- UK banks must refund authorised push payment scam victims up to £85,000 under the Payment Systems Regulator’s mandatory rules, in force since 7 October 2024.
- Unauthorised transactions — where you didn’t authorise the payment — must be refunded by the end of the next business day under the Payment Services Regulations 2017.
- Section 75 of the Consumer Credit Act 1974 covers credit card purchases between £100 and £30,000, even if the retailer has since gone out of business.
- If your bank refuses to refund you, you can escalate your complaint to the Financial Ombudsman Service, which can also help with claims involving general staying safe from scams guidance.
- The burden of proving gross negligence sits with your bank, not with you, when it assesses an APP fraud claim.
Last reviewed: September 2026
