Can You Get Your Money Back After a Bank Transfer Scam? Your Legal Rights Explained (2025)

What Victims of Bank Transfer and APP Scams Need to Know About Getting Their Money Back

A clear, up-to-date guide to UK refund rules for scam victims, including your rights, time limits, and what to do if your Bank refuses to pay.
Have you lost money to a scam through a bank transfer or Authorised Push Payment (APP)? You’re not alone, and most importantly, you may be legally entitled to a refund.

With new regulations introduced in October 2024, UK Banks now have clear, mandatory responsibilities to refund victims of APP fraud. However, Banks often refuse refunds or rely on complex rules to deny claims, leaving many victims confused and out of pocket.

In this guide, our expert scam recovery solicitors explain your legal rights, what counts as “gross negligence,” and how you can still recover your money even if the Bank says no.

Who Is Protected by UK APP Scam Refund Rules?

What is an Authorised Push Payment (APP) scam?

Authorised Push Payment (APP) scams happen when victims are tricked into authorising legitimate payments to fraudsters. Unlike unauthorised fraud, which occurs when criminals steal bank account details and transfer funds without permission, APP fraud involves the customer unintentionally authorising the fraudulent payment themselves.

What are the current rules for APP scams (2025)?

If you’ve been tricked into authorising a payment to a scammer, you may be legally entitled to a full or partial refund, even if your Bank has said no. UK regulations now require all Banks to follow strict rules when handling scam complaints.

Your right to a refund largely depends on:

• Whether the scam occurred before or after 7 October 2024.
• Whether the money was transferred to a UK Bank account, as opposed to a transfer to a foreign Bank account or a card payment.
• Whether you were classified as “grossly negligent” under the rules at the time of the transfer. Essentially, this means you ignored specific warnings from their Bank that the proposed transaction was suspicious and could be a scam.

What If Your Scam Happened Before October 2024?

The Voluntary CRM Code

Prior to October 2024, Banks could choose whether to follow the Contingent Reimbursement Model (CRM) Code, which offered some protection for scam victims. However:

• Not all Banks were signed up, especially smaller digital banks.
• Banks could refuse a refund or partial refund only if they claimed you ignored warnings that the transfer might’ve been a scam or should’ve known it was a scam.
• Many victims were unfairly blamed, leaving them without redress.

After 7 October 2024 — Mandatory Authorised Push Payments (APP) Refund Rules

From this date, the Payment Systems Regulator (PSR) introduced mandatory rules requiring all UK Banks to refund scammed victims if the following are met:

• The transfer was made to another UK Bank account.
• The customer was not grossly negligent (does not apply if you are classed as a “vulnerable” customer).
• The amount lost is within the £85,000 cap.
• The Bank may deduct a £100 excess unless you are classed as vulnerable.

These rules apply to payments made via Faster Payment Schemes and CHAPS.

What Does “Gross Negligence” Mean in a Scam Refund Case?

The Four Conditions Banks Can Use to Refuse a Refund

This is the most common reason Banks refuse or reduce refunds, but, in our experience, it’s often misused as Banks don’t apply the definition and guidance set by the Payment Systems Regulator. According to official guidance, a customer is only grossly negligent in four specific scenarios:

Before the Scam:

• Ignoring a specific warning from the Bank that the transfer could be a scam.
  (Generic on-screen warnings given to all transactions do not count; the warning, such as by call, email or text, must be direct and specific.)

After the Scam:

• Failing to report the scam to the Bank within 13 months.
• Failing to reply to reasonable and proportionate requests for information by the Bank when assessing the refund claim.
• Failing to consent to the Bank reporting the scam to the police or failing to report the scam to the Police when requested by the Bank.

Important: Only these four reasons can be used to refuse a refund under the “grossly negligent” exception. The burden of proof lies with the Bank — not the customer. They must prove you acted negligently, not the other way around.

What If You Transferred Money to a Foreign Account or Used a Debit Card?

If you made a debit card payment (credit card fraud is protected under the Consumer Credit Act 1974) instead of a bank transfer, or the money was sent to a foreign Bank, your case may not be covered by the APP rules. Banks will therefore often refuse such refund requests.

However, you may still have a valid claim if:

• Your Bank could have done more to prevent the scam.
• Your Bank failed to act quickly to recover the funds.

In these cases, you can escalate your complaint to the Financial Ombudsman Service (FOS). The FOS has legal authority to order your Bank to refund you.

What to Do If Your Bank Refuses to Refund You?

Your right to escalate to the Financial Ombudsman Service (FOS)

If your refund request is rejected, you can take your complaint to the FOS, the UK Financial Services redress body that investigates financial complaints. FOS has the power to overturn unfair decisions and order your Bank to repay you.

Here’s what you need to know about escalating your complaint:

• You have a 6-month time limit from the Bank’s final response to complain to FOS (with a 6-year long-stop deadline from the date of the scam).
• You can complain to FOS by letter or email. They will ask for your written documents about the scam and often contact the Bank for more information.
• It is a free service. You do not have to use a solicitor. However, you may wish to if you find the process too stressful or complex, or you want to present your case in the best possible light, quoting all the relevant rules.
• FOS will not only consider the APP refund rules (if applicable), but also whether the Bank applied those and other rules fairly.
• If FOS does not uphold your complaint and sides with the Bank, you can ask for a further review. If this is also rejected, you still have the right to go to court.

When legal action is the next step

If both the Bank and FOS refuse your claim, you may still have legal options. A solicitor can:

• Review the Bank’s decision and FOS’s decision.
• Advise if there is still a legal remedy by going to court.
• Represent you in a legal challenge.

Summary: Know Your Rights — And Don’t Accept a Refusal Without a Fight

You may be entitled to a refund after a scam — even if your Bank says no. Thanks to updated UK rules, Banks must refund APP scam victims unless they can prove you were grossly negligent. And even if your scam doesn’t meet the standard criteria, you still have powerful legal options.

If you’ve lost money in a bank transfer scam, speak to our expert team today. We’ll review your case for free and tell you straight away if you could be entitled to compensation. Get the legal review now.