Getting a Bank Refund in the UK: APP Fraud Reimbursement Explained

Table of Contents

• The mandatory reimbursement rule, in plain terms
• When a bank can refuse: the "consumer standard of caution"
• The crypto trap that defeats many claims
• Other tools if the APP rule does not fit
• How to claim, step by step
• Frequently asked questions
• Does the rule cover money I sent to a crypto investment scam?
• My bank says I was grossly negligent. Is that the end?
• What if I lost more than £85,000?
• How does this compare to other countries?

If you were scammed in the United Kingdom, you have stronger refund rights than victims almost anywhere else. Since 7 October 2024, banks are legally required to reimburse most authorised push payment (APP) fraud — the "you sent it yourself" scams that used to fall through every gap. But the right has firm edges, and one of them catches many crypto victims. Here is where you actually stand.

The mandatory reimbursement rule, in plain terms

The Payment Systems Regulator requires banks and payment firms to reimburse victims of APP fraud sent over Faster Payments. The core terms:

• It is automatic to claim. You do not need to prove the bank did anything wrong. If you were deceived into sending money to a fraudster, you are presumed entitled to reimbursement.
• Both banks pay. The cost is split evenly between your bank and the bank that received the money — which finally gives receiving banks a reason to police the accounts fraudsters use.
• The cap is £85,000 per claim. It was originally proposed at £415,000 and cut before launch, so very large losses may only be partly covered.
• A £100 excess may apply. Firms are allowed (not required) to deduct a £100 claim excess. It cannot be applied to customers who are vulnerable.
• You have 13 months to report. Raise the claim with your bank within 13 months of the last payment.

When a bank can refuse: the "consumer standard of caution"

Reimbursement is not unconditional. A bank can decline or reduce a claim if you acted with gross negligence — the regulator calls it failing the consumer standard of caution. In practice that is a high bar: ignoring a specific, clear scam warning from your bank, or refusing to engage with them. Ordinary carelessness is not enough, and the burden is on the bank to prove it.

The crypto trap that defeats many claims

This is the part that surprises people. The rule protects a UK Faster Payment to a fraudster. It does not rescue a payment you made to a legitimate business that delivered exactly what you asked for.

You → fraudster's UK bank account

Covered: this is APP fraud

You → real exchange → scammer's wallet

Not covered: the bank payment was legitimate

If you sent a Faster Payment straight to a bank account the fraudster controlled, that is textbook APP fraud and should be reimbursed. But if you bought genuine crypto on a regulated exchange and then sent that crypto on to the scammer, the payment your bank made — to the exchange — completed exactly as instructed. The loss happened later, on-chain, outside the Faster Payments system. That later transfer is not something the reimbursement rule reaches. It is the same distinction we explain in our guide to whether banks refund crypto scams.

Other tools if the APP rule does not fit

The reimbursement scheme is not your only route.

How to claim, step by step

1. 1

   Contact your bank immediately

   Report the fraud the moment you realise. Ask them to attempt a recall of the funds and to open an APP reimbursement claim. Speed can still catch money before it moves.

2. 2

   Report to Action Fraud

   File with Action Fraud (0300 123 2040) — the UK's national fraud reporting centre — and keep the crime reference number. A bank claim and a police report are separate tracks; do both.

3. 3

   Document everything

   Save every message, transfer confirmation, fake dashboard, and the fraudster's account details. This is the evidence your claim and any investigation rely on.

4. 4

   Escalate if refused

   If your bank rejects the claim or blames you for gross negligence, take it to the free Financial Ombudsman Service, which frequently overturns unfair refusals.

Frequently asked questions

Does the rule cover money I sent to a crypto investment scam?

It depends on how the money left your bank. A Faster Payment to a fraudster's UK account is covered. Buying crypto on a legitimate exchange and sending it on yourself usually is not, because the bank payment was made correctly to a real business.

My bank says I was grossly negligent. Is that the end?

No. Gross negligence is a high, narrow standard, and the bank must prove it — it cannot be applied to vulnerable customers at all. Refer the decision to the Financial Ombudsman Service, which reviews these refusals for free.

What if I lost more than £85,000?

Reimbursement is capped at £85,000 per claim. Above that, pursue the other routes — Section 75 for card payments, civil recovery, and always a police report, which keeps future recovery and tracing of the stolen crypto possible.

How does this compare to other countries?

The UK is currently the strongest. Australia's scam laws put duties on banks but no blanket reimbursement; Singapore's framework pays out only for phishing; and the US has no mandatory bank refund at all.