BANKING SCAMS

If you fall victim to a scam and send money under false pretences, you may lose the first £100, unless you are classed as vulnerable or the bank didn’t do enough to protect you. For example, you made a payment to a fraudster and the bank’s online systems didn’t flag any warnings or a ‘Confirmation of Payee’ checker for you to check that the person’s name and bank details match.

Or maybe a staff member, who ought to be trained to ask specific questions to prevent you being scammed, didn’t carry out sufficient checks. This would be a breach of the Financial Conduct Authority’s Consumer Duty rules, which requires firms to avoid foreseeable harm to customers.

For example, if you are elderly and have a visible impairment, staff would be expected to identify this, act in good faith, have a flexible approach and take additional care to deliver the right outcome.

How to get your money back

From 7 October 2024, all banks and payment firms must comply with the Payment Systems Regulator’s (PSR) mandatory reimbursement rules for Authorised Push Payment (APP) fraud. These rules replaced the voluntary Contingent Reimbursement Model (CRM) Code.

APP fraud reimbursement protections | Payment Systems Regulator

The rules mean you should get your money back if you were tricked into sending money to a fraudster for what you genuinely believed was a legitimate purpose.

To qualify, the scam must involve:

• You genuinely believing you were making a legitimate payment
• A scenario where the fraudster posed as someone genuine

What to do next

Contact your bank immediately. Ring the number on the back of your bank card or statement or dial 159 to speak to your bank.

Insist it was an Authorised Push Payment (APP) scam and that you are requesting a refund under the PSR’s mandatory reimbursement rules, which replaced the Contingent Reimbursement Model (CRM) Code.

Keep detailed records including names, dates, screenshots, adverts and payment references.

Put everything in writing so you have a paper trail of evidence. Stress you were tricked into sending money to a fraudster, have been scammed and you want to be reimbursed. Use key words like “I’ve been scammed”, “APP fraud” and “mandatory reimbursement” to reinforce your case.

How long should it take?

Banks must aim to resolve APP scam claims within five working days wherever possible. In more complex cases, they can extend this by up to 35 days, but they must tell you why and keep you updated.

If your bank refuses to reimburse you, ask for a final response letter (otherwise known as a deadlock letter). This is their final position and response on your complaint and will enable you to refer your complaint to the Financial Ombudsman Service for review.

Banks don’t like complaints being referred to the Financial Ombudsman Service as it costs them money and they risk adverse publicity.

I am elderly and vulnerable. What happens if I am scammed?

Banks have said vulnerable people will not be charged an excess on claims.

The Financial Conduct Authority defines a vulnerable person as: “Someone, who, due to their personal circumstances, is especially susceptible to harm – particularly when a firm is not acting with appropriate levels of care.”

This includes people experiencing mental health issues or cognitive impairments, serious illness or long-term health conditions, bereavement, trauma or relationship breakdowns, low income or sudden financial hardship, language barriers or low digital literacy.

If you fall into any of these categories, your bank should not apply the £100 excess and must take extra care to support you.

The Financial Conduct Authority stresses that firms shouldn’t wait for proof of harm. They must identify risk of harm. The FCA defines this as, “Even if a customer is managing financially for now, poor mental health could mean they’re more susceptible to future detriment.”

A bank has a duty of care to protect all customers.