Victim of a scam: Five steps to take if scammed

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In 2024, unfortunately, scams are getting harder to identify as they can seem very genuine, professional and sophisticated.

If you find that you are a victim of a scam, don’t panic. Being scammed can be a very distressing time and can have more than just a financial impact.

Victim of a scam

Here are 5 simple steps that you should do next to help and prevent further fraud:

Report the scam/fraud to your bank immediately. The number 159 is a centralised number to call specifically to report scams.
If it involves your bank account, freeze any accounts or pending transactions
Report the scam as financial crime to the police
Seek support either from Citizens Advice Bureau, Action Fraud and/or a legal entity such as Oakwood Solicitors.
Put measures in place to ensure prevent being scammed in the future.

Bank scam regulations

From October 7, new regulations have been put in place which means that banks, in most cases, must refund victims of scams.

Common type of bank scams

Bank transfer scams, or authorised push payment (APP) fraud, occur when fraudsters trick you into sending money from your bank account to theirs. Common types of scams include:

Romance scams: Fraudsters pretend to be in a relationship with you (often online and via social media platforms) and ask you to send them money.
Purchase scams: You pay for goods or services that don’t exist or never arrive, often through a fake website.
Impersonation scams: Scammers pose as officials from trusted organisations, like your bank, broadband provider or the police, to pressure you into transferring funds.
Investment scams: Fraudsters clone legitimate firms’ websites or offer fake investment opportunities.
Spoofing scams: Scammers intercept your communication with someone (like a solicitor or family member) and ask for payments.

Are you covered under the new rules?

The new rules cover scams involving UK bank transfers made via Faster Payments or CHAPS. Payments made by card, cash, or cheque are not included.

When do the new rules apply?

The new regulations apply to payments made on or after Monday, October 7, 2024. Payments made before this date fall under the old voluntary code of practice.

Which financial institutions will refund me?

All banks, building societies, e-money firms (such as prepaid card providers), and savings providers are covered by the new regulations.

How much can you claim back?

Banks are required to refund up to £85,000, though they may choose to refund more. The Payment Systems Regulator (PSR), the authority behind the new rules, believes this cap will cover 99.8% of APP scam cases, reimbursing around 90% of the total value lost.

Initially, the cap was set at £415,000 but was lowered to avoid discouraging investment and innovation in the financial sector. If your losses exceed £85,000 and you believe the bank is at fault, you can file a complaint with the Financial Ombudsman Service, which has a limit of £430,000.

How quickly can you expect a refund?

In most cases, banks aim to issue refunds within five working days. However, if your case requires additional investigation, the bank may take up to 35 working days.

Contact Oakwood Solicitors Ltd today if you have been a victim of a bank scam.

5 steps to take if you realise you have been a victim of a scam