Bank scams are on the rise, with fraudsters becoming more sophisticated in tricking people into transferring money, sharing sensitive information, or making unauthorised payments. If you’ve fallen victim to a scam, one of the first questions you may ask is: Will my bank refund the money?
The answer depends on how the fraud occurred, the bank’s policies, and whether you took reasonable steps to protect your account. In this guide, we’ll explain when banks refund scammed money, how the refund process works, and what to do if your bank refuses to return your funds.
Will The Bank Refund Me If I Get Scammed?
Whether or not your bank refunds you after a scam depends on the type of fraud and the actions you took before and after the scam.
Most banks will refund money if:
- You didn’t authorise the transaction – If fraudsters hacked your account and made payments without your knowledge, the bank is legally required to refund you under the Payment Services Regulations 2017.
- You were misled into transferring money (Authorised Push Payment fraud) – Many banks participate in the Contingent Reimbursement Model (CRM) Code, which aims to protect victims of APP scams (where people are tricked into transferring money to scammers).
- You reported the scam quickly – Acting immediately increases the chances of stopping or recovering the transaction.
However, banks may refuse refunds if they believe you:
- Acted negligently by ignoring scam warnings from the bank.
- Knowingly sent money to a suspicious third party without checking their legitimacy.
- Shared your security details or one-time passcodes with scammers.
Each case is assessed individually, so it’s important to gather evidence and challenge a bank’s decision if they refuse to refund you unfairly. That’s something we can help you with, so if you want free advice on your case, get in touch today.
What If The Bank Refuses A Refund?
If your bank denies your fraud refund request, you don’t have to accept their decision. There are steps you can take to challenge the outcome and fight for your money back.
- Ask for a Formal Review – Request that your bank reassesses your case, especially if you believe they didn’t consider all the evidence.
- Make a Complaint – If your bank still refuses, submit a formal complaint. Banks are required to provide a final decision within eight weeks.
- Escalate to the Financial Ombudsman Service (FOS) – If you’re unhappy with the bank’s response, the FOS can independently investigate your case. They have the power to overturn the bank’s decision and force them to refund you.
- Seek Legal Advice – If the scam involved a large sum, consulting a fraud recovery expert such as ourselves may help you explore legal options for getting your money back.
Many victims have successfully challenged refused refunds, particularly if the bank failed to warn them about scam risks or did not follow proper security procedures.
How Often Do Banks Refund Scammed Money In The UK?
Not all scam victims receive refunds. According to UK Finance, the banking industry’s fraud prevention body, £1.17 billion was stolen through fraud in 2023, with only 59% of losses refunded to victims of APP fraud.
Refund rates vary between banks, with some institutions offering more protection than others. Banks that follow the CRM Code (such as Barclays, Lloyds, NatWest, and HSBC) have a higher likelihood of refunding victims, but they don’t guarantee refunds in every case.
For unauthorised fraud (where money is stolen without your permission), banks typically refund victims unless they suspect the account holder failed to take reasonable precautions to protect their banking details.
To improve your chances of getting a refund:
- Report the fraud immediately – Delays can make it harder to recover money.
- Provide evidence – Keep records of all messages, emails, and calls related to the scam.
- Escalate the case if needed – If your bank refuses to refund you, complain to the Financial Ombudsman Service (FOS).
Banks must treat fraud victims fairly, so if you genuinely believed you were making a legitimate payment, you should challenge a refused refund decision.
How Will The Bank Give My Money Back?
If your bank approves a refund, they will typically return the money directly into your account. The process usually follows these steps:
- Investigation – The bank reviews the details of the fraud and determines whether a refund is warranted.
- Temporary Credit – Some banks issue a temporary refund while they investigate further.
- Final Refund – If the bank finds in your favour, the refund is made permanent.
Refunds are usually issued via:
- Direct credit to your account – The money appears in your balance once approved.
- Chargebacks for card payments – If you were scammed through a debit or credit card payment, the bank may reverse the transaction.
- Reimbursement through fraud protection schemes – If your bank is part of the CRM Code, they may compensate you even if the scam wasn’t directly their fault.
In some cases, the bank may recover funds directly from the scammer’s account, but this is only possible if the fraud is reported quickly before the money is moved. To learn more about reporting fraud, head here.
Will A Refund Take Long To Process?
The time it takes for a fraud refund depends on the type of fraud, with card fraud refunds typically processed within days, while Authorised Push Payment (APP) fraud cases can take weeks or months.
Banks aim to resolve fraud cases within 15 working days, but more complex investigations or cases escalated to the Financial Ombudsman Service may take several months.
To read more about how long banks take to refund scammed money, see our dedicated guide here.
Get Help Recovering Your Money After A Scam
If you’ve been scammed and your bank refuses to refund you, don’t give up. Our professional fraud recovery service can help challenge the bank’s decision and explore other ways to get your money back.
Our panel of fraud recovery specialists can:
- Assist in filing appeals with your bank to strengthen your refund request.
- Help you escalate your case to the Financial Ombudsman for an independent review.
- Provide expert advice on alternative recovery methods, such as chargebacks, legal action, or tracing lost funds.
Many scam victims wrongly assume they have no chance of recovering their money, but with the right approach, a refund is often possible.
If you need assistance, contact our fraud recovery team today and take the next steps to reclaim your stolen funds.
What Are The Biggest Banks In The UK?
The UK is home to a number of different banks and financial institutions. These organisations face fraud on a daily basis.
| HSBC Holdings | First Direct | ICICI Bank UK |
| Barclays plc | Tesco Bank | Industrial and Commercial Bank of China (UK) |
| Lloyds Banking Group | Sainsbury’s Bank | Investec Bank UK |
| NatWest Group | Bank of Ireland UK | Islamic Bank of Britain (now Al Rayan Bank) |
| Standard Chartered | The Access Bank UK Limited | J.P. Morgan Europe |
| Santander UK | Aldermore Bank | Julius Baer International |
| Nationwide Building Society | Al Rayan Bank | Mizuho Bank UK |
| Virgin Money UK | Allied Irish Bank (UK) | MUFG Bank (UK) |
| The Co-operative Bank | Bank of China (UK) | Nomura Bank International |
| Metro Bank | Bank of India (UK) | OakNorth Bank |
| Monzo Bank | Bank of Montreal (UK) | Paragon Bank |
| Starling Bank | Bank of New York Mellon (International) | Punjab National Bank (International) |
| TSB Bank | Bank of the Philippine Islands (UK) | QIB (UK) |
| Atom Bank | Bank Sepah International | Reliance Bank |
| Clydesdale Bank | Citibank UK | Schroder & Co Bank |
| Bank of Scotland | Close Brothers | Shawbrook Bank |
| Ulster Bank | Deutsche Bank UK | Tandem Bank |
| Yorkshire Bank | EFG Private Bank | The Bank of London |
| Danske Bank UK | FCE Bank | United Bank UK |
| Handelsbanken UK | Goldman Sachs International Bank | Zopa Bank |
