How to claim back money lost to a bank transfer scam
What is APP fraud?
Authorised Push Payment (APP) fraud happens when a scammer tricks you into sending money from your account to theirs — usually by pretending to be your bank, a delivery company, a solicitor, or even a family member. The payment looks genuine because you authorised it, but the recipient was never who they claimed to be.
According to UK Finance, victims lost more than £459 million to APP scams in 2023, with impersonation and purchase scams making up the bulk of cases.
Why does this matter for your claim?
Until recently, banks had a lot of discretion about whether to refund APP fraud victims. Outcomes varied wildly — two people with almost identical cases could get completely different answers.
That changed in October 2024, when the Payment Systems Regulator (PSR) introduced mandatory reimbursement rules for APP fraud. Under these rules, sending and receiving banks must refund eligible victims within five business days, and the cost is split 50/50 between the two banks involved.
Who is eligible?
You may be eligible for reimbursement if all of the following apply:
- You sent the payment in the UK, in pounds sterling
- The payment was made via Faster Payments or CHAPS
- You were deceived into sending it
- You reported it to your bank promptly
- You acted with reasonable care (the "consumer standard of caution")
Some circumstances reduce or remove eligibility — for example, if you ignored a specific warning from your bank, or if there is evidence of gross negligence. The rules are designed to protect genuine victims, not those who failed to take obvious precautions.
What if your bank says no?
Banks sometimes refuse claims they should accept — often by pointing to the "consumer standard of caution" in ways that don't fit your circumstances. If that happens, you have two routes to challenge the decision:
- The Financial Ombudsman Service (FOS) — free to use, binding on the bank if they uphold your complaint.
- Legal action — in higher-value cases, or where the bank's conduct falls short of the rules, a formal claim may recover more than the FOS can award.
How much could you recover?
Under the PSR rules, eligible APP fraud losses are reimbursed in full, subject to a £415,000 maximum per claim (set by the PSR and reviewed periodically). Smaller first-payment thresholds may apply in some cases.
What should you do?
If you've lost money to a scam — or you complained to your bank and the decision felt wrong — it's worth having someone review it. Eligibility often hinges on details the bank didn't weigh properly, and a second look can make the difference between a refusal and a full refund.