Bank transfer fraud: How to get your money back

New rules mean banks must refund victims of bank transfer scams - called APP fraud. Here's what they mean for you.

Will you get a full refund? See banks' refund policies

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

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.

It’s worth remembering that a bank or an authority like HMRC or the police will never call and ask you to move your money to a “safe account”. If you get a call like this, just hang up and contact your bank.

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Editor-in-chief

Liz Edwards has been a consumer writer and editor for more than 20 years. She led award-winning teams at the campaigning publisher Which?, and has covered a range of consumer rights and personal finance topics including pensions, credit, banking and insurance. Liz has appeared frequently in national media such as The Sun, Metro, HuffPost and The Independent. She loves to cut through waffle to give consumers the real lowdown. And she loves puns. See full bio

Liz's expertise
Liz has written 97 Finder guides across topics including:
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