Fraudulent payments

Find out more about claiming a refund, why a refund might be refused, and what to do if you’ve been tricked into making a payment to a scam account.

First published: 17/04/2016 Last updated: 18/12/2024 See all updates

Unauthorised payments from your account

Money should only be taken from your bank account if you authorise the payment. If you notice a payment that you didn’t authorise, contact your bank or other payment service provider immediately.

If you accidentally paid the wrong person, or were charged more than expected for a service, find out how your bank can help[1].

How to claim a refund

1

Tell your bank as soon as you notice an unauthorised payment and ask them for a refund. Make sure you get in touch with your bank within 13 months from the date of the payment. Otherwise, you may not be able to make a claim.
2

Your bank may ask you some questions and get you to fill out a form stating what happened. But this shouldn’t delay your refund.
3

The refund should be in your account by the end of the next business day. You should also be refunded any charges and interest you paid (or credit interest you have lost) because of the payment.
4

If your card was lost or stolen and you do not report it, you may have to pay up to £35 of the unauthorised transaction(s). If it was not possible for you to detect the loss or theft of the card, or if your bank was at fault, you will not have to pay.
5

If the bank refuses to refund the payment and you disagree with the decision, you can complain. Find out how to complain[2].

When banks can refuse to refund you

In an unauthorised payment claim, your bank can only refuse to refund you if:

You authorised the payment, or
You acted fraudulently, or
You failed to protect the details of your card, PIN or password in a way that allowed the payment.

If you authorised the payment, but now suspect you’ve sent money to a scammer, read our information below on fraudulent payments you have authorised[3].

Credit card payments and overdrawn accounts

If the unauthorised payment was made on a credit card, or from an overdrawn account, your bank can only refuse a refund if:

You, or someone acting on your behalf, authorised the payment, or
The person who used your payment card (including virtual cards) had it with your consent.

The use of your password, card or PIN might not on their own be proof that you authorised a payment.

Deliberately making a false claim for a refund is fraud. Your bank could report it to the police.

Protect yourself from unauthorised fraud

When you get a debit or credit card, or sign up for online, telephone or mobile banking, you should be told how to keep your details safe.

Your bank or card issuer must also tell you how to get in touch if your card is lost or stolen, or if you think someone else knows your password or PIN.

Never share your bank account or credit card details unless you’re certain who you’re dealing with. If you’ve already given fraudsters this information, tell your bank immediately using the contact details on your card or statements, or by checking the Financial Services Register[4]. 

Fraudulent payments you have authorised

Scammers trick people into transferring money. This might be when a fraudster tricks you into paying money into their account – known as an ‘authorised push payment’ (APP) or a ‘bank transfer’ scam. Or when a fraudster persuades you to make a card payment or withdraw cash.

These examples are different from other types of banking and payment scams - for example, when fraudsters try to take money from your account without you knowing (see information on unauthorised payments above).

If you think you’ve sent money to a scammer:

Contact your bank or other payment service provider immediately, using the contact details on your card or statements, or by checking the Financial Services Register[4].
Contact the police on 101.
Report the scam to Action Fraud[5] – the UK’s national reporting centre for fraud and cybercrime.
Keep records of all contact and correspondence between you and the scammer. This will be useful when you ask your bank – or payment service provider – to reimburse you or if you need to bring a complaint to the Financial Ombudsman Service[6].

As we explain further below, the rules and regulations differ according to whether you:

Made a bank transfer to someone else’s account in the UK on or after 7 October 2024, when the Payment Systems Regulator’s reimbursement rules[7] for Faster Payments Scheme (FPS) and CHAPS came into force.
Made a bank transfer to someone else’s account in the UK on or after 28 May 2019 but before 7 October 2024, and your bank was a signatory to the Contingent Reimbursement Model (CRM) Code[8].
Paid money into an account that was in your own name.
Made a card payment, or
Another scenario where you were tricked into making a payment or withdrawal.

What to do if you have paid a scammer

By direct transfer (bank or account-to-account transfer)

Authorised Push Payment (APP) fraud is where a payer is tricked into sending money to a fraudster’s bank or payment account.

Protections from APP fraud have changed recently. This means that more victims of fraud should be able to get reimbursement.

Rules around reimbursement differ depending on the type of payment method used[9]. Different requirements apply for payments made via the Faster Payments System and CHAPS, compared to payments made overseas, on a crypto exchange, or to someone who has the same payment service provider as you (called ‘on us’ or intra-firm payments, or an internal book transfer).

You can check which payment method was used by asking your bank or payment service provider.

Authorised payments to fraudsters from 7 October 2024

If you authorised a payment to a fraudster on or after 7 October 2024, you may be covered by protections introduced by the Payment Systems Regulator (PSR).

Under these rules, your payment service provider is required to reimburse you for APP fraud carried out in the UK through the Faster Payments System (FPS) or CHAPS. If you are eligible, your payment service provider must refund you up to £85,000, and you should usually get your money back within 5 working days - but it might take up to 35 working days. Your payment service provider might not reimburse the first £100 of your claim.

You might not get a refund if your payment service provider can prove you weren’t careful enough when you made the payment, or that you were involved in the fraud. Read more about APP fraud on the Payment Systems Regulator’s website[8].

If you have a complaint about how a firm has applied the reimbursement requirement, you may be eligible to refer your complaint to the Financial Ombudsman Service (see their guidance[10] for consumers on scams where you’ve been tricked into making a payment).

Authorised payments to fraudsters between 28 May 2019 and 7 October 2024

If you authorised a fraudulent payment on or after 28 May 2019 and before 7 October 2024, and your bank or provider was signed up to the voluntary Contingent Reimbursement Model Code (CRM code)[9] for APP scams, you may be able to get your money back. The CRM code was launched in 2019 and had several signatories[11], representing the largest UK banking groups. The code applied to APP fraud executed across the Faster Payments System, CHAPS and an internal book transfer.

By card

If you've paid for something you haven't received via a card payment, you may be able to get your money back by contacting your card provider.

Your card provider can ask the seller's bank to refund the money. This is known as the 'chargeback scheme'.

If you paid by debit card, you can claim under the chargeback scheme for the total payment.

If you paid by credit card and the item cost more than £100 but less than £30,000, you might be able to claim under the Consumer Credit Act 1974 – this is known as a 'Section 75 claim'.

If the item cost less than £100 and you paid by credit card, you can't claim under Section 75, but you can claim under chargeback.

By Direct Debit

You should be able to get a full refund under the Direct Debit Guarantee. You can find out about the Direct Debit Guarantee on the Direct Debit website[12].

No matter which rules apply, if you think you’ve been scammed – and you’re unhappy with how your bank or payment service provider handled things – the Financial Ombudsman Service[7] may be able to help.

The Serious Fraud Office has published a page listing organisations[13] who offer support and advice for those affected by fraud and scams.

When banks can claim your money

Your bank may be able to claim money from one of your accounts to pay a debt you have in another account. This is known as the right to set-off. This might happen if you miss a loan or credit card payment, and you have funds in another account with the same bank. If you can see an amount debited from your account by your bank, this might be why.

If your bank wants to take money from your account to pay a debt, we expect them to:

Tell you about the right to set-off at least 14 days before it intends to take the money.
Estimate how much money you need for your priority debts and essential living expenses like your mortgage, rent and food bills.
Refund you, in most cases, if the bank realises that you needed to use the money for priority debts or essential living expenses.
Not take money that’s intended for specific purposes, such as money given to you by the NHS for healthcare, or if a third party is entitled to the money, for example because you are a trustee holding the money for someone else.
Tell you quickly when the right to set-off has been used on your account.

The right to claim money from your account to pay a debt should also be clearly explained in your account’s terms and conditions.

18/12/2024 : Editorial amendment General page updates and new sections on fraudulent payments you have authorised

20/03/2023 : Editorial amendment Page update as part of the website refresh

19/08/2021 : Information changed Money Advice Service to MoneyHelper

19/03/2021 : Editorial amendment General page updates.

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[1] https://www.fca.org.uk/consumers/making-receiving-payments
[2] https://www.fca.org.uk/consumers/how-complain
[3] https://www.fca.org.uk/consumers/fraudulent-payments#section-fraudulent-payments-you-have-authorised
[4] https://www.fca.org.uk/consumers/fca-firm-checker
[5] https://www.actionfraud.police.uk/reporting-fraud-and-cyber-crime
[6] https://www.financial-ombudsman.org.uk/consumers/how-to-complain
[7] https://www.psr.org.uk/information-for-consumers/our-new-app-fraud-reimbursement-protections/
[8] https://www.lendingstandardsboard.org.uk/crm-code/
[9] https://www.psr.org.uk/information-for-consumers/ways-of-paying/
[10] https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/fraud-scams/scams-youve-tricked-making-payment
[11] https://committees.parliament.uk/writtenevidence/108066/html/
[12] https://www.directdebit.co.uk/direct-debit-guarantee
[13] https://www.sfo.gov.uk/publications/information-victims-witnesses-whistleblowers/organisations-offering-information-support-and-advice/
[14] https://www.fca.org.uk/consumers/using-payment-service-providers
[15] https://www.fca.org.uk/consumers/account-information-payment-initiation-services
[16] https://www.fca.org.uk/consumers/banking-online-account-scams
[17] https://www.fca.org.uk/consumers/your-rights-financial-services

Fraudulent payments

Find out more about claiming a refund, why a refund might be refused, and what to do if you’ve been tricked into making a payment to a scam account.

On this page

Unauthorised payments from your account

How to claim a refund

When banks can refuse to refund you

Credit card payments and overdrawn accounts

Protect yourself from unauthorised fraud

Fraudulent payments you have authorised

What to do if you have paid a scammer

Authorised payments to fraudsters from 7 October 2024

Authorised payments to fraudsters between 28 May 2019 and 7 October 2024

When banks can claim your money

On this page

More on payments