Bank transfer fraud: How to get your money back

If you were tricked into transferring money from your bank account to a fraudster, you’re entitled to a refund from your bank, under new rules.

The rules, which came into force on 7 October, 2024, apply to “authorised push payment” (APP) fraud. In 2023, fraudsters stole £459.7 million through APP scams. The aim of the rules is to encourage banks and other payments companies to boost fraud prevention.

What is APP fraud?

Authorised push payment (APP) fraud is when a fraudster tricks you into sending money from your account to an account that they control, for example by selling items online that don’t exist or pretending to be from your bank or an authority like the police or HMRC, or even a member of your family who needs money.

If you made the payment using Faster Payments or CHAPS from one UK bank account to another, you’re covered. The maximum refund is £85,000 but most banks have said they will or may apply an “excess” of £100 – an amount that you wouldn’t get back. They’re allowed to do this under the rules. The aim is to encourage consumers to be wary. You can see your bank’s policy in our table further down this guide.

How to get your money back

• You must alert your account provider as soon as you can, and this has to be within 13 months of making the fraudulent payment.
• You must respond to any requests for information from your bank promptly.
• You need to report the details to the police or allow your account provider to do that on your behalf.
• You can expect to get your refund within 5 business days of making a claim unless your bank needs more information (which could be from you or the bank that received the payment, for example). In these cases, it could take up to 35 business days.
• Although companies can opt to apply an excess of up to £100, they can’t do this if you’re classed as a vulnerable consumer.
• If you’re unhappy with the way your provider has responded to your claim, you can take your case to the Financial Ombudsman Service (FOS) for a review. The ombudsman is independent and can make rulings up to £430,000.
• If you lose more than £85,000, you can still raise a case with your payment provider and if you’re unhappy with its response, you can complain to the FOS.

You won’t get a refund if you’re found to have been complicit in the fraud or “grossly negligent”. The watchdog which brought in the rules, the Payment Systems Regulator, says gross negligence is “set at a high bar” and doesn’t apply to vulnerable consumers. Banks and payment firms must prove that the customer acted with gross negligence, through “ignoring specific, tailored warnings or not responding to reasonable requests for information, for example”.

Which banks will fully cover your fraud losses?

AIB, Nationwide, TSB and Virgin Money were the only 4 providers that promised full refunds when we contacted 21 major banks and building societies in September and October 2024. The rest said they “may” apply an excess – typically case by case – and others confirmed they would apply it.

Bank/building society	Logo	Excess it can apply	Will apply case by case?	Review
AIB		None	N/A	Read review
Bank of Scotland (LLoyds Group)		£100		Read review
Barclays		£100	Unclear	Read review
The Co-operative Bank		£100		Read review
Danske Bank		£100		Read review
first direct		£100		Read review
Halifax (LLoyds Group)		£100		Read review
HSBC		£100		Read review
Chase (JP Morgan Chase)		£100	Unclear	Read review
Lloyds Bank		£100		Read review
Metro Bank		£100		Read review
Monzo		£100		Read review
Nationwide		None	N/A	Read review
Natwest		£100		Read review
Royal Bank of Scotland (NatWest Group)		£100		Read review
Santander		£100		Read review
Starling Bank		£50		Read review
Triodos Bank		£100		Read review
TSB		None	N/A	Read review
Ulster Bank (NatWest Group)		£100		Read review
Virgin Money		None	N/A	Read review

Who do the rules apply to?

Individuals, “microenterprises” (businesses employing 9 or fewer people, with a turnover or annual balance sheet of no more than €2 million/around £1.67 million) and charities are all covered.

The rules apply to all payment firms – which includes small payment firms, building societies and e-money firms as well as banks. And firms that receive a fraudulent payment are included. Credit unions, municipal banks and national savings banks aren’t included.

If you pay with a credit or debit card, there are different protections in place.

Bottom line

Fraudsters are getting far more sophisticated and using tools such as AI to trick people into transferring money. If you have a call claiming to be from your bank you can verify it by calling 159, which is operated by Stop Scams.