Banking & Payments
Bank Fraud
Authorised push payment (APP) fraud is now the largest single category of payment fraud in the UK. New PSR rules mean most victims are entitled to mandatory reimbursement, but banks frequently refuse on the first attempt.
The Mechanics
How authorised push payment fraud operates
APP fraud relies on psychological manipulation to bypass your natural skepticism. Understanding the exact lifecycle of the deception is critical to building a legal case for bank reimbursement.
The Deception
Fraudsters impersonate trusted entities like your bank, the police, or a solicitor using spoofed numbers and convincing scripts.
The Urgency
They create a false sense of panic, claiming your account is compromised or you are under investigation, forcing immediate action.
The Bypass
You are instructed to ignore automated bank warnings or Confirmation of Payee mismatches, framing them as security tests.
The Dissipation
You authorise the transfer to a safe account. The funds are instantly moved through mule accounts and converted to crypto or cash.
Scam Scenarios
Common types of bank fraud
While the underlying goal is always financial theft, scammers adapt their impersonation tactics to target different victims and industries.
Safe Account Scams
Victims are tricked into moving their entire savings to a supposedly secure account controlled by the fraudster.
Fake Solicitor Fraud
Fraudsters intercept property transactions, sending fake bank details to divert house deposits and life savings.
Invoice & CEO Fraud
Businesses are tricked into paying fake invoices or urgent wire transfers after an executive's email is compromised.
Investment & Romance APP
Victims are emotionally manipulated into authorising large bank transfers to fake brokers or romantic partners.
Our Approach
Our Recovery Process
Document
We capture every detail, including timing, communications, and your bank's actions, to build a watertight complaint.
Complain
We submit a formal complaint citing the CRM Code, the PSR reimbursement rules, and any failures in their duty of care.
Escalate
If the bank refuses or delays, we escalate to the Financial Ombudsman Service and, where appropriate, the courts.
Recover
We secure reimbursement and pursue the receiving bank for any shortfall or AML failures.
Legal Authority
We leverage UK financial regulations
Even when the deception is highly convincing, the banking system's safeguards and regulatory frameworks remain your strongest tool for recovery. We hold institutions accountable.
PSR Mandatory Reimbursement
Under the new Payment Systems Regulator mandate, banks must reimburse most victims of APP fraud up to £85,000 within five business days, regardless of which bank you used.
Receiving Bank AML Failures
If the bank that received your funds failed to apply proper Anti-Money Laundering checks or ignored obvious fraud patterns, we pursue them directly for their share of the liability.
Financial Ombudsman Service
If your bank unfairly rejects your claim by citing gross negligence, we escalate the dispute to the FOS, which routinely overturns these decisions in favour of the victim.
What Counts as Bank Fraud?
Bank fraud covers a range of scams that involve the misuse of banking systems. The most common today is authorised push payment (APP) fraud. You are deceived into authorising a payment to an account controlled by a fraudster. Because you authorised it, banks have historically refused refunds, but the law has changed significantly.
Your Rights Under the New Rules
Since October 2024, the Payment Systems Regulator (PSR) requires UK banks to reimburse most victims of APP fraud up to £85,000 within five business days, regardless of which bank you used. This applies to faster payments and CHAPS within the UK.
The earlier Contingent Reimbursement Model (CRM) Code still applies to signatory banks for older claims. Both regimes require you to have acted reasonably, but the bar is lower than many banks initially claim.
Why Banks Refuse And How We Overturn It
Banks routinely cite gross negligence or claim you should have known to refuse a refund. We challenge these refusals by:
- Demonstrating the sophistication of the scam and any vulnerability factors
- Showing the bank failed Confirmation of Payee or ignored unusual transaction warnings
- Pursuing the receiving bank for failure to apply know your customer checks
- Escalating to the Financial Ombudsman Service, who upholds a high proportion of APP claims
£120,000 Recovered from Fake Property Solicitor APP Fraud
Our client was in the process of purchasing a property when their email was intercepted. They received fake bank details from a fraudster posing as their solicitor and authorised a £120,000 transfer. The sending bank initially refused the refund, citing client negligence. We intervened by proving the receiving bank failed to flag the account as high-risk and ignored Confirmation of Payee mismatches. The FOS ruled in our favour, forcing a full reimbursement.
Has your bank refused to refund you?
Speak with our specialists today for a free, confidential consultation.
Common Questions
Frequently Asked Questions
Most blameless APP fraud victims are now entitled to mandatory reimbursement up to £85,000 under the PSR rules. If your bank has refused, we can challenge that refusal.
You should report the fraud to your bank as soon as possible. Formal complaints generally need to be brought within six years, with a six-month window after the bank's final response to escalate to the Ombudsman.
No. The whole point of APP fraud is that victims authorise the payment. The legal protections exist precisely because of that deception.
No. The £85,000 cap is on mandatory reimbursement. We can pursue the excess through complaints against the receiving bank, civil claims, and other routes.
We offer flexible funding options for bank fraud claims, including deferred fee arrangements where appropriate. We will agree all terms in writing before starting work.
Take Action Today
Affected by bank fraud?
Our team of expert fraud lawyers can help you recover your lost funds and hold the banks accountable.