TL;DR: Too long, Didn’t read
The New Law: As of October 2024, the Payment Systems Regulator (PSR) rules state that banks must reimburse victims of “APP Fraud” (Bank Transfers).
The Speed: They must refund you within 5 business days.
The Limit: You can claim up to £85,000 per claim.
The Catch: You won’t get a refund if you were “Grossly Negligent” (e.g., you ignored a specific “This is a Scam” warning pop-up from your bank).
It starts with a text from “Delivery Service” or a phone call from “The Fraud Team.” You panic. You move your money to a “Safe Account.” Ten minutes later, you realize the truth: The money is gone.
In the past, banks would say: “You authorized the transfer, so it’s your fault.” Not anymore. New rules introduced in late 2024 have shifted the blame. Now, the bank is responsible for keeping you safe—and paying you back if they fail.
What is “APP Fraud”?
This guide covers Authorized Push Payment (APP) fraud. This is where you are tricked into voluntarily sending money to a scammer (e.g., buying a fake car on Facebook Marketplace or paying a fake builder).
Note: If someone steals your card and buys things without your permission, that is “Unauthorized Fraud,” and you have always been entitled to a full refund.
The “Mandatory Reimbursement” Rule
Under the new Payment Systems Regulator (PSR) rules, banks and payment firms (like Revolut or Monzo) generally must refund you if you fall victim to an APP scam.
The Split: Interestingly, the cost of the refund is split 50/50 between the sending bank (yours) and the receiving bank (the scammer’s). This forces both sides to check for fraud.
Am I Eligible?
Yes, if:
You are a consumer, charity, or “micro-enterprise” (small business).
The payment was made using Faster Payments (Bank Transfer) or CHAPS.
The payment was made to a UK account.
When Can They Say “No”? (Gross Negligence)
The bank can only refuse your refund if they can prove you were “Grossly Negligent.” This is a high bar. It means more than just being careless. It usually means:
You lied to the bank when they asked what the payment was for.
You ignored a specific, tailored warning (e.g., a pop-up saying “We believe this payee is a scammer, do not pay” and you clicked “Pay Anyway”).
(Note: Vulnerable customers are protected even if they were negligent).
Step 1: Call 159 Immediately
If you think you have been scammed:
Stop all payments.
Dial 159. This is a secure hotline that connects you directly to your bank’s fraud department.
Report it. Tell them exactly what happened.
Step 2: The Complaint
If the bank refuses to refund you (claiming negligence):
Ask for their “Final Response Letter.”
Contact the Financial Ombudsman Service (FOS). The Ombudsman overturns unfair bank decisions every day. It is free and easy to use.
A Quick Story: Meet Sarah
The Scam: Sarah saw a designer handbag on Instagram for £200. She transferred the money via her banking app. The bag never arrived, and the seller blocked her.
The Bank: Sarah contacted her bank (Barclays). They initially hesitated.
The Law: Sarah quoted the PSR Mandatory Reimbursement Rules. She showed she had checked the seller’s profile and didn’t ignore any specific warnings.
The Win: The bank refunded the full £200 within 5 days.
Summary: Act Fast
Shame is the scammer’s best weapon. Don’t be embarrassed.
Call 159.
Quote the PSR Rules.
Demand your refund.
Frequently Asked Questions
Is there an excess fee?
Yes. Banks are allowed to charge an excess of up to £100 on each claim. This means if you were scammed out of £90, you might not get anything back. However, vulnerable customers are exempt from this excess.
Does this cover Crypto or Cash?
No. The new PSR rules only apply to bank transfers (Faster Payments and CHAPS) made within the UK. If you sent money via Bitcoin, Western Union, or physically handed over cash, these rules do not apply (though you should still report it).
What if the scam happened before October 2024?
The new mandatory refund rules started on 7 October 2024. If you were scammed before this date, you are covered by the old voluntary code (CRM Code). Most major banks were signed up to this, so you can still claim, but the legal “force” behind it is slightly weaker.
What if I paid by Credit Card?
If you paid by card (not bank transfer), you are protected by different rules. You should use Section 75 (for purchases over £100) or Chargeback (for debit cards).
(Sources: Payment Systems Regulator – APP Fraud, Citizens Advice – Banking Security)
This guide applies to UK bank transfers. Crypto scams and international payments may have different rules.