What is Authorised Push Payment (APP) fraud?

APP fraud occurs when you are tricked into authorising a bank transfer to a fraudster's account. Common types include romance scams (fake relationships), investment fraud (fake high-return investments), impersonation fraud (someone pretending to be your bank, HMRC, or the police), purchase fraud (paying for goods that don't exist), and invoice fraud (fake invoices from criminals posing as suppliers). From October 2024, UK banks must reimburse most APP fraud victims up to £85,000.

How does the new PSR mandatory reimbursement scheme work?

Under the Payment Systems Regulator's mandatory reimbursement rules (effective 7 October 2024), all banks and payment service providers using the Faster Payments system must reimburse customers who fall victim to APP fraud — unless the customer was grossly negligent or acted fraudulently themselves. The maximum claim is £85,000. Banks must process claims within 5 business days. The cost is split 50/50 between the sending and receiving bank.

What is the deadline for reporting APP fraud to my bank?

Under the PSR scheme, you must report APP fraud to your bank within 13 months of the final fraudulent payment. This is a strict deadline. Report to Action Fraud (0300 123 2040) at the same time. For frauds before October 2024, the Contingent Reimbursement Model (CRM) code may apply — contact your bank immediately.

What if my bank rejects my APP fraud claim?

If your bank rejects your APP fraud claim, you can escalate to the Financial Ombudsman Service (FOS) for free. The FOS has been increasingly sympathetic to APP fraud victims and regularly overturns bank rejections. You have 6 months from the bank's final decision to refer to the FOS. A specialist fraud solicitor can advise on whether a bank rejection is defensible.

Can I get my money back from a crypto investment scam?

Crypto investment scams often involve APP fraud — you transferred money to a scammer. Your bank may be required to reimburse you under the PSR scheme if the transfer used Faster Payments. The chances of recovery depend on whether your bank processed the payment properly and whether any scam warning signs were ignored. Some recoveries are also possible through court action against payment processors.

Bank Fraud & APP Fraud Refund UK 2025 — PSR Mandatory Reimbursement Guide

Quick answer — PSR scheme

Am I entitled to a refund under the new APP fraud rules?

From 7 October 2024, if you were tricked into making a bank transfer (Faster Payments) and reported it within 13 months, your bank is legally required to refund you — up to £85,000 — within 5 business days. Exceptions: if you were grossly negligent (ignored explicit scam warnings) or acted fraudulently. Standard reimbursement requires no proof that you were careful — the burden is on the bank to prove gross negligence.

🔐 Oct 2024 mandatory✓ Up to £85,000⚠️ 13-month deadline

Fraud categories

What type of fraud are you dealing with?

APP fraud covers many types of scam. Each has slightly different evidence requirements and recovery options.

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Investment Fraud

Fake investment platforms, crypto scams, Ponzi schemes promising high returns

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Romance Scam

Fake relationships built over weeks or months, ending with requests for money transfers

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Impersonation Fraud

Someone posing as your bank, HMRC, police, or utility company demanding payment

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Purchase Fraud

Paying for goods (cars, concert tickets, holiday lets) that never arrive

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Invoice Fraud

Fake or hijacked invoices from suppliers requesting payment to a new account

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Property Fraud

Intercepted emails in property transactions diverting solicitor or deposit payments

Free eligibility checker

PSR Reimbursement Eligibility Checker

Tick each statement that applies to your situation to assess your eligibility under the mandatory PSR scheme:

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APP Fraud Eligibility Checker

Based on PSR mandatory reimbursement rules (effective 7 October 2024)

The fraud involved a bank transfer (Faster Payments) — not a card payment, cash, or cryptocurrency purchase

The transfer was made from a UK bank account using the Faster Payments network

I authorised the payment (i.e. I made the transfer myself — even though I was tricked into doing so)

The fraud occurred on or after 7 October 2024 (or before, under the previous CRM voluntary code)

I have reported (or will report) the fraud to my bank within 13 months of the final payment

I did not ignore explicit scam warnings shown by my bank at the time of payment

Assessment

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Step-by-step

How to claim under the PSR scheme in 2025

Report to your bank immediately — in writing

Call your bank's fraud team to report the fraud and freeze any transactions. Then follow up in writing (email or letter) to create a formal record. Include: dates, amounts, account details you sent money to, and how you were deceived.

Report to Action Fraud

Report the fraud at actionfraud.police.uk or call 0300 123 2040. Get your crime reference number — this is important for your bank claim. Action Fraud reports are shared with the National Fraud Intelligence Bureau.

Submit a formal reimbursement request under the PSR scheme

Write to your bank's complaints department referencing the PSR mandatory reimbursement policy. State the date, amount, and that you are requesting reimbursement under the Payment Systems Regulator's rules effective 7 October 2024.

Bank must respond within 5 business days (routine) or 35 days (complex)

For straightforward cases, the bank must reimburse within 5 business days. For complex investigations, they have up to 35 business days. During this time, do not make any further payments — fraud recovery scams are common.

If rejected — escalate to the Financial Ombudsman Service (free)

You have 6 months from the bank's final decision to refer your case to the FOS. The FOS has broad powers to award reimbursement and has been consistently critical of banks that reject valid APP fraud claims.

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Beware recovery scamsAfter losing money to fraud, many victims are approached by fake "fraud recovery" companies claiming they can get money back for an upfront fee. This is a second fraud. Legitimate specialists work on a no win, no fee basis and never ask for money upfront.

Bank-by-bank guide

How major UK banks handle APP fraud claims

BankPSR compliant?Avg responseFOS escalation rate

Barclays✓ Compliant3–5 daysLow

Lloyds / Halifax✓ Compliant3–7 daysLow

NatWest / RBS✓ Compliant5–10 daysMedium

HSBC✓ Compliant5–14 daysMedium

Monzo✓ Compliant2–5 daysLow

Starling✓ Compliant2–4 daysLow

Santander⚠️ Variable7–21 daysHigh

TSB✓ Compliant5–10 daysMedium

Data based on FOS complaint statistics and published PSR compliance data 2024–2025. All banks listed are PSR-compliant under the mandatory scheme from October 2024. FOS escalation rate indicates how often customers need to escalate after initial bank decision.

FAQs

APP fraud and bank fraud — frequently asked questions

Does the PSR scheme cover crypto and investment scams?+

It depends on how you sent the money. If you transferred money from a UK bank account via Faster Payments to a fraudster (even if you then used it to "buy" crypto or invest in a fake scheme), the bank transfer itself is covered by the PSR scheme. If you paid directly to a crypto exchange using a card, that's usually covered by Section 75 (credit card) or chargeback (debit card) instead.

What if the fraud happened before October 2024?+

Frauds before 7 October 2024 are not covered by the mandatory PSR scheme. Instead, you should complain under the Contingent Reimbursement Model (CRM) voluntary code, which many banks signed up to from 2019. CRM reimbursement is discretionary but banks have reimbursed many victims. If refused, the FOS can still award reimbursement based on whether the bank acted fairly and warned you adequately about fraud risks.

What is 'gross negligence' and can banks use it to reject my claim?+

Gross negligence is a very high bar — higher than ordinary carelessness. A bank must prove you completely disregarded an obvious and explicit risk. Simply being deceived by a sophisticated scam does not constitute gross negligence. Ignoring a specific warning displayed by your bank at the point of payment (e.g. "This payment looks suspicious — are you sure?") is the kind of behaviour that might support a gross negligence finding. Being naive, trusting, or not knowing about fraud risks is not enough.

Can I also claim for fraud losses through my credit card?+

Credit card fraud uses different rules. Unauthorised transactions are covered by the Payment Services Regulations (you're liable for a maximum of £35, or nothing if the bank's security was inadequate). For authorised purchases where goods/services weren't delivered as described, Section 75 of the Consumer Credit Act covers purchases of £100–£30,000 on credit cards — the card issuer is jointly liable with the merchant.

Related guides

Related fraud and financial claim guides

Disclaimer: The PSR mandatory reimbursement scheme came into force 7 October 2024. Claims for fraud before this date use the CRM voluntary code. Eligibility depends on the specific facts of your case. This is not legal or financial advice. ClaimValue is not regulated by the FCA or PSR. Always consult a qualified specialist before proceeding.

Scammed by a bank transfer? You may now be legally entitled to your money back