Banks get it wrong on fraud refunds

Banks are failing to help scam victims

New data released today by Which? has displayed the scale of the problem in the banking industry when considering refunds for victims of scams. Banks are wrongly denying fraud victims compensation in up to 8 in 10 cases.

Refundee has been consistently highlighting that firms have been getting it wrong when considering whether to give money back when people have lost money to bank transfer fraud. 

The new information released by Which? shows that some firms have been getting it wrong almost every time they review a victims case, and Refundee is calling on those who lost money to APP scams to challenge those decisions.

What does the new data show?

Around three quarters of complaints to banks about funds lost to scams were incorrectly decided by them. That means that a huge number of victims have been denied refunds when they should have got their money back from their bank. 

Some firms incorrectly refused to refund victims in almost 9 out of every 10 cases, and many got it wrong in around 8 out of every 10 cases.

Which banks were the worst for fraud refunds? 

RBS / Natwest took the crown as the worst institution, incorrectly refusing to refund APP fraud 86% of the time. 

Santander got it wrong 82% of the time, whilst Bank of Scotland (81%) and Starling (80%) fraud victims also lost out with them failing to reach the right outcome in more than 8 out of every 10 cases. 

Many other firms unfortunately also reached the wrong outcome more than 70% of the time, leaving customers unsure whether they could get their money back from their bank.

I’ve lost money to a scammer. Can I get my money back?

The figures released today show that refunds are a lottery. Who you bank with unfortunately determines whether you get your funds back or not. 

But that is not the end of the matter. If your bank has said no then you can challenge them! You don’t need to use a service like Refundee to do this, you can get your money back from your bank yourself. There is also a useful guide on the Which? website for how to take action yourself.

If you would like us to take your case forward on a no-win no-fee basis however, you can start by filling in our no obligation claim form. We understand the obligations on institutions inside out and use this knowledge to present your case at the institution and at the Financial Ombudsman Service.

What about the Contingent Reimbursement Model?

This new data indicates that banks who have signed the Contingent Reimbursement Model, such as Natwest, are failing to interpret it correctly. 

Refundee thinks that it is vital that customers who have lost funds challenge the decisions of their banks as it is clear that they are getting it wrong on scams.

Can Action Fraud get me a refund?

Reporting the scam to Action Fraud is vital, it could lead to the fraudsters getting caught. However, they only pass over a small percentage of cases for investigations and a refund is unlikely. 

Your best chance of getting your money from a scam is challenging your bank and you can do this yourself without using a claims management company like Refundee.