Can I recover money lost to investment fraud?

Recovery is possible depending on how you paid. If you transferred money via bank transfer (Faster Payments), the PSR mandatory reimbursement scheme (from October 2024) may require your bank to refund up to £85,000. If you paid by credit card, Section 75 may apply. If you bought genuine investments from an FCA-authorised firm that subsequently failed, FSCS covers up to £85,000. If you invested through an unauthorised firm, FSCS does not apply — your primary route is the PSR scheme or FOS complaint.

What types of investment fraud are most common in the UK?

Common UK investment fraud types include: fake trading platforms (forex, crypto, CFDs) showing false profits; clone firms impersonating legitimate FCA-authorised brokers; boiler room scams promoting worthless shares; unregulated collective investment schemes; land banking or holiday let scams; and high-yield investment programmes promising unrealistic returns.

What is a clone firm investment scam?

Clone firms copy the names, registration numbers, and websites of genuine FCA-authorised firms. They cold-call or email potential investors using the legitimate firm's credentials, then direct payments to fraudulent accounts. If you invested with what you believed was an FCA-authorised firm, first check the FCA register to see if the specific contact details match — and whether the firm flagged your contacts as a clone. Clone firm victims have strong grounds for PSR scheme claims.

Investment Fraud Recovery UK 2025 — Can I Get My Money Back?

Honest overview

Can you recover money lost to investment fraud?

Recovery depends on three key factors: (1) how you paid (bank transfer, credit card, or direct crypto); (2) whether the firm was FCA-authorised or not; (3) whether your bank met its obligations under the PSR rules. The PSR mandatory scheme (October 2024) is the strongest route for bank transfer fraud — up to £85,000. Credit cards offer Section 75 protection. FSCS covers failures by genuinely FCA-authorised firms. There is no shortcut: avoid anyone who claims to recover money for an upfront fee.

💼 Bank transfer: PSR route✓ FCA-authorised: FSCS⚠ No upfront fees

Scam identification

Which type of investment fraud were you targeted by?

💻 Fake trading platforms

Fraudulent websites showing trading accounts with apparent profits. You deposit money, see "returns", then find you can't withdraw. Usually involves forex, crypto CFDs, or binary options. PSR route if via bank transfer.

📋 Clone firm scam

Criminals copy a real FCA-authorised firm's name and reg number. Very strong grounds for PSR claim — the bank should have warned you when you sent money to an account not matching the firm you thought you were using.

📞 Boiler room fraud

Cold-call pressure sales of worthless or non-existent shares or bonds. Often targets previous investment fraud victims ("reloading"). Report to FCA. PSR route if paid by bank transfer.

🌍 Land banking / holiday let

Unregulated investment in land or property that's either worthless or doesn't exist. Often involves authorised activities used as a front for unregulated ones. Report to FCA and Action Fraud.

₿ Crypto investment scam

Fake crypto exchanges, yield farming, or "DeFi" platforms. If you sent money via bank transfer to "buy" crypto, PSR scheme applies to the bank transfer. Direct crypto sends: very hard to recover. See our crypto recovery guide.

🤝 Ponzi / pyramid scheme

Early investors paid from later investors' money. When the scheme collapses, most investors lose. FSCS may apply if run by an FCA-authorised firm. FOS complaint possible against introducers. SFO investigation may be relevant for large schemes.

Recovery routes

Your investment fraud recovery options — in priority order

PSR mandatory reimbursement — bank transfer fraud (strongest route)

If you transferred money from a UK bank account via Faster Payments to the fraudsters, the PSR scheme (from October 2024) requires your bank to refund up to £85,000 unless you were grossly negligent. Report to your bank immediately and within 13 months of the transfer. This is your primary and most powerful route if bank transfer was used. Full PSR guide →

Section 75 — credit card payments (£100–£30,000)

If you paid by credit card and the investment service was not delivered as described (because it was fraudulent), your credit card issuer is jointly liable under Section 75 of the Consumer Credit Act. This covers purchases of £100–£30,000. Contact your card issuer's disputes team and submit a Section 75 claim explicitly.

FSCS — FCA-authorised firm failure (up to £85,000)

If you invested through a genuinely FCA-authorised firm that subsequently failed (went into administration), the Financial Services Compensation Scheme covers eligible investment claims up to £85,000. Check fscs.org.uk to see if your firm is covered. This does not apply to unauthorised firms or clone firms.

FOS complaint — bank or platform failures

Even if your bank initially rejects your PSR claim, escalate to the Financial Ombudsman Service (FOS) for free within 6 months of their final decision. The FOS has been increasingly critical of banks that reject investment fraud claims without adequate investigation, particularly where banks failed to apply proper fraud warnings at the time of payment.

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Beware investment fraud "recovery firms"After losing money to investment fraud, you will likely be targeted by fake recovery services. They claim to trace and retrieve funds for an upfront fee. This is a second fraud — designed to steal more money from already-victimised people. Legitimate fraud recovery specialists work on a no win, no fee basis — they never ask for upfront payment.

Immediate steps

What to do right now

Call your bank's fraud line immediately

Even if time has passed, call now. Your bank may be able to recall the payment or at minimum register it as a fraud — which starts the PSR clock. Number is on the back of your bank card or the bank's website under "fraud" or "scams".

Report to Action Fraud

Report at actionfraud.police.uk or call 0300 123 2040. Get a crime reference number — essential for your bank claim and any FOS complaint. Action Fraud passes reports to the National Fraud Intelligence Bureau and City of London Police.

Check the FCA register and warning list

Search the firm at fca.org.uk/register and the FCA warning list at fca.org.uk/consumers/warning-list. This helps establish: (a) whether the firm was authorised; (b) whether it was a clone of an authorised firm; (c) whether the FCA had already issued a warning about them.

Preserve all evidence

Screenshots of the platform, all emails and messages, any written contracts or terms, transaction receipts, wallet addresses if crypto was involved. Evidence becomes harder to obtain over time, and is critical for any PSR, FOS, or FSCS claim.

FAQs

Investment fraud recovery — questions answered

I invested over £85,000 — can I recover the full amount?+

The PSR scheme caps at £85,000 per claim. The FSCS also caps at £85,000 per authorised firm failure. For losses above these caps, civil legal action against any identifiable defendants — the firm's directors, payment processors, or introducers — is the route, but this requires identifying recoverable assets and is expensive and uncertain. A specialist fraud solicitor can advise on viability. For the portion up to £85,000, PSR and FSCS routes remain available regardless of the total loss.

The bank says I authorised the payments — why should they refund me?+

Under the PSR mandatory scheme, the fact that you authorised the payment does not exempt the bank from reimbursement — that's the whole point of APP fraud compensation. The bank must prove you were grossly negligent to avoid paying. Being deceived by a sophisticated fraud is not gross negligence. If the bank rejected your claim citing authorisation, this is exactly the kind of rejection to take to the FOS.

I invested years ago — is it too late to claim?+

For PSR scheme claims: you must report to your bank within 13 months of the final payment. For FSCS claims: as long as the scheme is still open. For FOS complaints: within 6 months of the bank's final decision. For legal proceedings against the fraudsters: within 6 years of the fraud (or 3 years from date of knowledge). The PSR 13-month deadline is the strictest — if you're within it, act today.

Related guides

Disclaimer: PSR scheme applies to Faster Payments bank transfers from October 2024. FSCS covers FCA-authorised firm failures only. Recovery odds vary significantly by case. Never pay upfront recovery fees. Not legal or financial advice. ClaimValue is not regulated by the FCA.