Falling victim to identity theft or fraud can be distressing, and the financial impact can be significant. Fraudsters may run up debts in your name, steal funds from your bank account, or make unauthorised purchases using your personal details. However, there are legal protections in place that can help you recover stolen money and restore your financial standing.
Money Stolen from Your Bank Account
If money has been taken from your bank account without your authorisation, you may be entitled to a full refund under the Payment Services Regulations (PSR). Banks are required to return funds that were taken fraudulently unless they can prove that you were negligent or complicit in the fraud.
- Immediate reimbursement: As of October 7, 2024, banks are required to reimburse fraud victims within five UK business days.
- Liability limits: If the fraud occurred before you reported it, you may be liable for up to £50—but many banks choose to waive this amount.
- Shared responsibility: The cost of reimbursing victims is now split between the sending and receiving banks, encouraging both to improve fraud prevention.
- Exclusions: These reimbursement rules do not apply to international payments, cryptocurrency transfers, and CHAPS transactions.
- £100 excess fee: Some banks have introduced a £100 excess fee before reimbursing fraud victims, but some providers have waived this charge.
If your bank refuses to reimburse you, you can escalate your case to the Financial Ombudsman Service (FOS), which offers a free dispute resolution service.
Money Stolen from Your Credit Card
If fraudsters use your credit card without your permission, you are also protected by the Consumer Credit Act 1974 and the Payment Services Regulations:
- £50 liability cap: Like with bank fraud, you may be liable for the first £50, but most credit providers waive this.
- Chargeback protection: If a fraudulent transaction was made on your card, you can ask your bank to issue a chargeback to reverse the payment.
- Section 75 protection: If you made a purchase worth over £100 and under £30,000 with your credit card, your provider is jointly liable with the seller. This means you can claim money back if fraud was involved or the product/service wasn’t delivered.
- No liability after reporting: Once you have notified your credit card provider about fraudulent transactions, you cannot be held responsible for further unauthorised spending.
APP Fraud (Authorised Push Payment Scams)
Authorised Push Payment (APP) fraud occurs when victims are tricked into transferring money to fraudsters. In these cases, banks previously refused to reimburse victims, claiming they had “authorised” the transaction. However, new protections have been introduced:
- Reimbursement cap: Under the 2024 APP fraud rules, victims may be entitled to reimbursement of up to £85,000, depending on the bank’s policies.
- Mandatory reimbursement: Banks are required to reimburse victims within five business days unless the victim is found to have been grossly negligent.
- Shared responsibility: Both the sending and receiving banks now share the costs of reimbursement, incentivising fraud prevention measures. (FT)
- Exclusions: APP reimbursement does not apply to transactions involving cryptocurrency, international payments, or CHAPS transfers.
Money Lost Due to Other Scams
If you lost money through other types of scams, you may still be able to recover your funds through:
- Debit card transactions: Many banks offer a chargeback scheme, allowing you to dispute unauthorised transactions.
- PayPal and online payment services: If you used PayPal, check their Buyer Protection Policy. Other digital wallets and payment processors may also have fraud reimbursement policies.
Always contact your bank or payment provider immediately after discovering a scam. The faster you act, the better your chances of recovering your money.
Steps to Take to Get Your Money Back
If you have fallen victim to fraud, follow these steps to maximise your chances of recovering your losses:
- Report the fraud to your bank or card provider immediately – Request a chargeback or reimbursement under the appropriate laws and regulations.
- Contact Action Fraud – Report identity theft and fraud to the UK’s official fraud reporting service. Visit actionfraud.police.uk or call 0300 123 2040.
- Check your credit report – Look for any fraudulent accounts or loans taken out in your name. You can access free credit reports from Experian, Equifax, and TransUnion.
- Register with CIFAS for Protective Registration – This places a warning on your credit file to help prevent future identity fraud. Visit CIFAS to learn more.
- Gather evidence and escalate complaints – If your bank refuses to refund you, take your case to the Financial Ombudsman Service.
Final Thoughts
Recovering from identity theft can take time, but UK legislation provides strong protections for victims. Acting quickly and following the correct procedures can significantly improve your chances of getting your money back. The rise in ‘hybrid’ scams—where fraudsters use multiple techniques—means that staying vigilant and informed is more important than ever.
Banks and regulators are increasingly calling on tech companies to share responsibility for fraud prevention, particularly as many scams originate on digital platforms.