Direct Debit Fraud
Unauthorised or misleading use of direct debit instructions to take recurring payments from a bank account without the account holder's genuine informed consent.
Also known as: unauthorised direct debit, debit mandate fraud, subscription fraud
Last reviewed: 10 June 2026
Direct debit fraud occurs when recurring payment instructions are set up against a bank account without the genuine, informed consent of the account holder. This may involve identity theft (the criminal uses stolen account details to establish a direct debit mandate) or deceptive sign-up flows (a merchant buries recurring billing terms in fine print or uses 'negative option' billing).
In the UK, the Direct Debit Guarantee provides strong consumer protection: if a payment is taken in error or without authority, the bank must offer an immediate refund. Consumers should review direct debit schedules regularly in their online banking and cancel any they do not recognise.
Online subscription fraud is a growing variant: free trial offers that auto-upgrade to paid subscriptions, which can be difficult to cancel. Read all terms before entering payment details for a 'free' trial, particularly when the merchant is unfamiliar.