Understanding Money Recovery from Scams
Recovering money lost to scams in the UK can be a difficult process, but taking action is vital. Scammers often use sophisticated tactics to trick people into sending money or sharing personal information, and once funds have been transferred, they may be quickly moved or withdrawn, making recovery challenging. Despite these obstacles, it’s important to know that there are steps you can take to try and get your money back, and acting swiftly can make a real difference.
Scams where people lose money come in many forms. Some of the most common include online shopping scams, where fake websites or sellers take payment but never deliver goods; investment scams, which promise high returns but are actually fraudulent; and phishing scams, where criminals pose as legitimate organisations to steal your bank details or personal data. Romance scams, lottery or prize scams, and impersonation scams (where someone pretends to be from your bank or the police) are also widespread. Each type of scam may require a slightly different approach to recovery, but the underlying principles are similar.
The law in the UK offers some protection for scam victims, especially for payments made by card or direct debit. For example, under the Consumer Credit Act 1974, if you paid for goods or services costing between £100 and £30,000 with a credit card, you may be able to claim a refund from your card provider under Section 75. Banks are also required by the Payment Services Regulations 2017 to refund unauthorised payments in many cases, though there are exceptions – especially if you were tricked into authorising the payment yourself (known as Authorised Push Payment or APP scams). Some banks have signed up to the Contingent Reimbursement Model Code, which may offer additional protection for APP scam victims.
Time is of the essence when you discover you have been scammed. Contact your bank or payment provider immediately – the sooner you act, the greater the chance of stopping or recovering the funds before they disappear. Gather all relevant information, such as transaction details, correspondence with the scammer, and any evidence of the scam. Reporting the incident to the authorities and seeking advice can also help protect others and strengthen your case for recovery.
If you want to learn more about the different types of scams and your rights as a consumer, visit our guide on understanding scams and your rights. This information can help you recognise potential scams in the future and take informed steps if you ever need to recover lost money.
Step 1: Report the Scam to the Right Authorities
Reporting a scam is the essential first step towards recovering your money and stopping fraudsters from targeting others. When you report a scam, you not only help authorities investigate and potentially trace the criminals, but you also create an official record that may support your case if you seek a refund or take legal action.
Why reporting is important
Scams are often carried out by organised groups who target many people at once. By reporting what happened to you, you give the authorities vital information that can help them spot patterns, warn others, and sometimes even recover stolen funds. In some cases, reporting quickly can improve your chances of getting your money back, especially if your bank or payment provider is able to freeze or reverse a transaction.
Who should you report to?
In the UK, several organisations handle scam reports, depending on the type of scam:
Action Fraud: This is the UK’s national reporting centre for fraud and cybercrime. If you’ve been scammed online, through email, phone, or in person, you should report it to Action Fraud. They collect information and pass it to the National Fraud Intelligence Bureau for investigation.
Local Police: If you feel threatened, believe the scammer is nearby, or if a crime is in progress, contact your local police immediately. For non-emergencies, you can report by calling 101.
Consumer Protection Bodies: If the scam relates to goods or services, organisations like Citizens Advice can offer guidance and may help you report the issue to Trading Standards.
For a step-by-step guide on how to report a scam, including which authority to contact for your specific situation, see our dedicated resource.
How does reporting help?
Reporting a scam can:
Increase the chances of tracing your money or the scammer, especially if you act quickly.
Support ongoing investigations and help authorities build a case against fraudsters.
Provide you with a crime reference number, which you may need when contacting your bank or making an insurance claim.
Help protect others by enabling authorities to issue warnings and prevent similar scams.
Remember, even if you feel embarrassed or think your case is a one-off, your report could be the missing link that helps stop a wider scam. Taking action now is the first and most important step towards recovery and prevention.
Step 2: Contact Your Bank or Payment Provider Immediately
Contacting your bank or payment provider immediately after discovering you’ve been scammed is one of the most effective steps you can take to try and recover your money. Acting quickly increases the chances that your bank can stop or reverse the transaction before the scammer withdraws or transfers the funds. Here’s what you need to know and do:
Why Speed Matters
Time is critical when dealing with scams. Most banks and payment providers have procedures to freeze suspicious transactions or attempt to recover money if notified promptly. The sooner you make contact, the better your chances of limiting your losses.
Under the Payment Services Regulations 2017, UK banks and payment providers are required to investigate unauthorised or fraudulent payments and may be obliged to refund you, provided you notify them without undue delay – ideally as soon as you notice the scam.
What to Tell Your Bank or Payment Provider
When you contact your bank or payment provider (such as PayPal, credit card company, or app-based payment service), be ready to provide as much detail as possible, including:
The date and time of the transaction(s)
The amount of money involved
The name and account details of the recipient, if known
A description of how the scam occurred (e.g., phishing email, fake investment, romance scam)
Any communication you’ve had with the scammer (such as emails, texts, or phone numbers)
Reference numbers or receipts related to the payment
Providing clear and detailed information helps your bank investigate the matter quickly and may support your case for a refund or chargeback.
What Your Bank Can Do
Depending on the situation and how quickly you act, your bank or payment provider may be able to:
Freeze the transaction: If the payment is still pending, they might be able to stop it before the scammer receives the funds.
Reverse or recall the payment: For certain types of payments, such as bank transfers or card payments, your bank may attempt to recover the money from the recipient’s bank.
Initiate a chargeback: If you paid by debit or credit card, you may be able to request a chargeback. This is a process where the bank tries to recover your money from the scammer’s bank. Credit card payments are also protected under Section 75 of the Consumer Credit Act 1974, which may allow you to claim a refund for transactions between £100 and £30,000 if something goes wrong.
Investigate the fraud: Your bank will open a fraud investigation and may ask for further information or evidence to support your claim.
Possible Outcomes
Full refund: If the bank determines the payment was unauthorised or you were a victim of fraud, you may receive a full refund.
Partial recovery: Sometimes, only part of the money can be recovered, especially if the scammer has already moved the funds.
No recovery: If the funds have already been withdrawn or transferred by the scammer, it may not be possible to get your money back. However, your report can help prevent future scams and may be useful for law enforcement investigations.
Common Questions
What if I authorised the payment myself?
If you were tricked into authorising the payment (known as Authorised Push Payment fraud), you may still be able to claim a refund under the Contingent Reimbursement Model Code, which many UK banks have signed up to. Your bank will review your case to see if you took reasonable care or were vulnerable to the scam.
Will reporting the scam affect my credit score?
No, reporting a scam to your bank will not negatively impact your credit score.
Should I stop using my account?
It’s a good idea to monitor your account closely for further suspicious activity and consider changing your online banking passwords.
Remember, contacting your bank or payment provider quickly and providing all relevant details gives you the best chance of recovering your money and protecting yourself from further harm.
Step 3: Seek Advice on Legal Actions and Recovery Options
Taking legal action can be a useful step if you’ve lost money to a scam and other recovery methods have not worked. Before proceeding, it’s important to understand your options, the potential benefits, and the challenges involved.
Legal Options for Recovering Money
One route is to consider making a claim through the small claims court. This process is designed for individuals seeking to recover smaller amounts of money (generally up to £10,000 in England and Wales). The small claims court can be used for disputes such as unpaid debts or compensation for losses, including those resulting from scams. However, you’ll need to provide evidence of your loss and show that you have tried to resolve the issue directly with the other party.
It may also be worth seeking professional legal advice, especially if the amount involved is significant or the scam is particularly complex. A solicitor can help you understand whether legal action is likely to be successful and what evidence you’ll need. They can also advise on the costs involved, as legal proceedings can sometimes be expensive and there is no guarantee of recovering your money.
When is Legal Action Appropriate?
Legal action might be appropriate if:
The scammer’s identity is known and they are based in the UK.
You have clear evidence of the transaction and your loss.
Other avenues, such as contacting your bank or reporting the scam, have not led to a resolution.
However, there are challenges. Scammers often use false identities or operate from overseas, making them difficult to trace or bring to court. Even if you obtain a court judgment, enforcing it and actually recovering your money can be difficult if the scammer has no assets or is untraceable.
Other Recovery Options
Before or alongside legal action, consider alternative options such as mediation. Mediation involves a neutral third party helping both sides reach a voluntary agreement. This can be quicker and less costly than going to court, but it relies on the other party being willing to participate.
If the scam involved a business or trader that is part of a trade body or ombudsman scheme, you may be able to raise a complaint through those channels. Trade bodies sometimes have codes of conduct and dispute resolution services that could help recover your money or secure compensation.
Getting Further Support
Legal processes can be complicated, and it’s important to get reliable advice before proceeding. For a step-by-step guide on practical actions you can take, including legal options and how to gather evidence, see our page on steps to recover money after a scam.
Remember, acting quickly and gathering as much information as possible about the scam will improve your chances of a positive outcome, whether you pursue legal action or explore other recovery routes.
Additional Support for Scam Victims
Recovering from a scam is not just about getting your money back – it can also take a toll on your emotional wellbeing and financial stability. Many people feel embarrassed, anxious, or stressed after being scammed, and it’s important to remember that you are not alone. Scams can affect anyone, regardless of age or background.
If you are struggling with the impact of a scam, there are services available to help you cope with both the emotional and financial consequences. Talking to someone about your experience can make a real difference. You might consider reaching out to a mental health professional or a support group, especially if you’re feeling overwhelmed or anxious. Practical financial advice is also available to help you manage any losses and plan your next steps.
Support services can play a crucial role alongside your efforts to recover lost funds. They can offer guidance on managing your finances, help you understand your rights, and provide emotional reassurance as you go through the recovery process. For more information on where to find help and practical tips on coping, see our dedicated page on support for dealing with the effects of scams.
Remember, seeking support is a positive step towards recovery – both financially and emotionally. Don’t hesitate to reach out if you need help.
Preventing Future Scams
Preventing Future Scams
Recovering your money after a scam can be difficult, so taking steps to protect yourself from future scams is essential. By learning how to spot the warning signs and staying up to date with scam tactics, you can reduce your risk of falling victim again.
How to Spot Common Scams
Scams can take many forms, from fake emails and texts to phone calls and social media messages. Some common signs of a scam include:
Unexpected contact: Be wary if you’re contacted out of the blue, especially by someone claiming to be from your bank, HMRC, or another official body.
Pressure to act quickly: Scammers often create a sense of urgency, telling you that you must act now or risk losing money or facing legal action.
Requests for personal information or payment: Genuine organisations will never ask you to share passwords or move money to a “safe” account.
Too-good-to-be-true offers: If a deal or investment sounds much better than anything else on the market, it’s likely a scam.
For more detailed guidance, see our tips for spotting and avoiding scams.
Stay Informed and Up to Date
Scammers are always finding new ways to trick people. Keeping yourself informed about the latest scam techniques can help you stay one step ahead. Regularly check updates from trusted sources, such as your bank or official government channels, and share any new warnings with friends and family.
Use Trusted Advice and Support
When looking for advice on how to protect yourself, always use information from reputable sources. Avoid relying on unofficial forums or social media posts, as these can sometimes spread misinformation. If you’re unsure about a message or call you’ve received, contact the organisation directly using their official contact details.
What to Do If You’re Unsure
If you suspect you’ve encountered a scam or are unsure about a request, it’s always safer to pause and check. Do not provide personal or financial information until you are certain the request is genuine. Reporting suspicious activity promptly can also help protect others.
By staying alert, informed, and cautious, you can significantly reduce your chances of being caught out by future scams.
