Can I dispute a bank transfer in the UK if I get scammed?
UK banks are now required to reimburse most victims of Authorised Push Payment fraud under rules introduced by the Payment Systems Regulator in 2023 — but there are conditions and caps.
Last reviewed: 10 June 2026
Explanation
Authorised Push Payment (APP) fraud is when you are manipulated into voluntarily transferring money to a scammer. For many years, UK banks took the position that because the customer authorised the payment, they bore the loss. This changed significantly in 2023 when the Payment Systems Regulator (PSR) introduced mandatory reimbursement rules for APP fraud.
Under the new framework, banks and payment firms must reimburse APP fraud victims a minimum of £85,000 per claim, with a higher maximum. Victims must report the fraud promptly and cooperate with the investigation. The reimbursement obligation is split between the sending and receiving bank.
There are exceptions: banks can reduce or deny reimbursement if they believe the victim was grossly negligent, ignored clear fraud warnings, or paid someone they knew or had a business dispute with. These exceptions are intended to prevent abuse rather than to deny legitimate fraud victims.
For Faster Payments and CHAPS transfers, the Confirmation of Payee (CoP) system now cross-checks account name against account number and sort code before you complete a transfer — if they do not match, you receive a warning. Proceeding after a CoP mismatch warning may affect your reimbursement claim.
If your bank refuses a reimbursement claim, escalate to the Financial Ombudsman Service (FOS), which is a free service for consumers and has authority to direct banks to pay out in valid cases.
Common red flags
- Transfer to a new payee with an account name that does not match the sort code and account number
- Urgency to transfer before CoP warnings can be investigated
- Request to pay a 'safe account' that a caller claiming to be your bank has set up for you
- Invoice from a supplier with different bank details than used previously
What to do now
- Report to your bank immediately and use the words 'APP fraud' so they apply the correct process
- Request reimbursement under the PSR APP fraud rules — cite this specifically
- If your bank refuses, escalate to the Financial Ombudsman Service at financial-ombudsman.org.uk
- Report to Action Fraud at actionfraud.police.uk
- Keep all evidence: transfer records, communications, and any CoP warnings you received
Frequently asked questions
What is the PSR APP fraud reimbursement cap?
The PSR requires a minimum reimbursement of £85,000 per claim, with individual firms able to set higher limits. The payment comes from both the sending and receiving bank, split equally.
What counts as 'gross negligence' that could reduce my claim?
Ignoring explicit fraud warnings from your bank, failing to take reasonable steps to verify a payee, or continuing a transfer after being advised not to may constitute gross negligence. Simply being deceived, even if in hindsight the signs were there, does not automatically count.