Can I get my money back from a bank transfer scam?
Bank transfer scams, or Authorised Push Payment frauds as they are known within the industry, have become more and more common. In 2020, UK Finance reported that £479 million was lost in the UK to these scams in that year alone. If you've lost money to a UK wire transfer scam,Refundednow may be able to help get your money back from your bank.
What is a bank transfer scam?
This type of scam involves tricking you into transferring funds from your own account to one belonging to a scammer. They can take a variety of forms, but the most common types of fraud where you are persuaded to transfer funds include:
Romance Scams
Where you send it to someone who has tricked you into a relationship.
Investment Scams
Where you send it thinking it is for a legitimate investment. This can be anything such as property, crypto, forex or stocks and shares.
In 2021, there has been a huge growth in situations where the scammers convince you to send funds to cryptocurrency, or where they pretend to be from your institution's fraud team and warn that you need to move your funds to a safe account.
If you've been tricked into transferring funds to the account of someone you don't know, you might be able to get your money back from your bank.
Can I get my money back from a Bank Transfer?
For some victims, from May 2019 the Contingent Reimbursement Model Code will apply. This is a voluntary code on Authorised Push Payment scams that provides protections for customers of signatory firms. It delivers a commitment from all signatory firms to reimburse victims of authorised push payment fraud as long as the customer has met the standards expected of them under the code. Put simply, it sets out how firms should approach the prevention of scam payments and when they should refund victims.
There are a collection of exclusions that apply to the Code, and firms have been heavily criticised by groups such as Which? for inconsistent application of the rules. Whether you get a refund or not can be a lottery that depends on who you have an account with, how they interpret the Code and how they interpret the facts of your case as you have presented them. Before making a claim, it is vital that you read the Code and make the arguments that you think are relevant to your case.
From the 7th October 2024, this code has been replaced by new regulation called the Mandatory Reimbursement. Unlike the CRM, this is not a voluntary code, and is mandatory for payment providers in the UK. Whilst it is similar to the CRM, it should offer higher protections to customers as banks are expected to do more to protect their customers. However, unlike the CRM, there is a cap for reimbursement set at £85,000 per receiving bank.
I didn't pay by bank transfer, can I still get my money back from my bank?
Debit Card
If you used your debit card, you may be able to get your money back through a chargeback.
It can be particularly useful in situations where you paid for goods and services that were never received if you fell victim to a purchase scam. For example, you can ask your card provider to try to get the money back from the organisation.
A chargeback works by the firm withdrawing funds that were previously deposited into the recipient's account and putting them back into your account. They may dispute a chargeback with the firm if they can prove the transaction was legitimate.
Credit Card
If you have paid via credit card for goods or services, you may be protected under Section 75.
In circumstances where the retailer or trader, or if you lost funds to a scam and paid via credit card, you can contact your bank to try to reclaim the money you lost, or contact Refundednow. These cases are usually more straightforward, so we'd recommend that you contact your card provider first and see if they can help you.
There is some useful information on the Citizens Advice website if you want to learn more about your options to get money back from your bank when you've been a victim of fraud.