Do Banks Refund Scammed Money in Australia and the United Kingdom?

Quick Overview

Summary

The article discusses the differences between Australia and the UK regarding bank refunds for scam victims. In the UK, new laws require banks to reimburse victims of certain authorised scams, while in Australia, there are no such laws, though some voluntary codes and legal protections for specific unauthorised card transactions exist. Both countries urge consumers to protect themselves and report scams promptly.

Key Points

• UK law requires banks to refund victims of authorised push payment scams from October 2024, up to £85,000.
• Refund eligibility in the UK depends on customer actions and prompt reporting.
• Some UK banks may have a £100 excess for refund claims.
• Australia lacks laws mandating banks to refund scam victims, except for certain unauthorised card transactions.
• Australian banks follow voluntary codes and have varying policies for scam refunds.
• Consumer protection relies heavily on reporting incidents quickly and following bank-specific procedures.

FAQ

Do UK banks have to refund scam victims?

Yes, under new laws from October 2024, UK banks must reimburse victims of authorised push payment scams, provided certain conditions are met.

Are Australian banks required to refund scammed money?

No, there are no specific laws requiring Australian banks to refund most scam victims, except for some unauthorised card transactions.

What scams are covered by UK bank refund laws?

The laws cover authorised push payment scams, where victims are tricked into sending money to a scammer.

Do Banks Refund Scammed Money?

We’re often asked, do banks refund scammed money? Unfortunately, this is no simple answer, and the response from cyber investigation firms and banks can vary greatly from country to country and even bank to bank. Scams are a growing concern in Australia, with the Australian Competition and Consumer Commission (ACCC) reporting Australians lost a record $3.1 billion to scams in 2022.  Although some countries like the UK have laws requiring banks to refund scam victims Australia has no such laws.

Australian Advocates and consumer groups have been calling on the government to adopt better protections for scam victims and require banks to refund scam victims. The ACCC has stated that banks should reimburse scam victims. However, reports from the ABC stated that Australian banks reimburse less than 5 per cent of scam victims.

Will Banks in the UK Refund Scammed Money?

The UK government introduced laws requiring banks to refund scam victims who made payments on or after 7 October 2024. These laws make UK banks responsible for protecting their customers’ money and require them to reimburse up to £85,000. The Financial Conduct Authority (FCA) has ordered UK banks to reimburse customers who have been tricked by authorised push payment (APP) scams.

However, the process of getting a refund in the UK is not always straightforward, and certain requirements must be met before a refund can be issued. Customers must have taken reasonable care to protect themselves from the scam and reported the fraud promptly. The bank will then investigate the matter and determine if a refund is possible.

Some banks have implemented a £100 excess on refund claims, but this is not the case for all of the banks. It’s important to understand your bank’s procedures and policies around this process, as it will have an impact on how easy it is to get your money back and under what circumstances they will be required to issue a refund.

As mentioned, these laws apply to authorised push payment scams, so depending on the type of scam, it may not always be possible to get the bank to reimburse the funds. Understanding these laws and what scams they apply to will give victims the best chance of being reimbursed. Have a look at the FCA report on the new laws for more information.

Will Banks in Australia Refund Scammed Money?

In Australia, things work differently, banks are encouraged, though not required, to have a code of practice for dealing with scams, but this is not legally binding. The Australian Banking Association provides information on how to protect yourself from scams and what to do if you think you have been scammed. 

While there are no laws in Australia requiring banks to reimburse scam victims, some banks do have policies in place regarding reimbursement of customers who have fallen victim to certain types of scams. It is important to check what policies, if any, the bank has regarding refunds and what requirements must be met to qualify for a refund.

According to the Community Legal Centre Financial Rights Legal Centre, there are some circumstances where banks are required by law to issue a refund. The laws predominantly cover card transactions and relate to things like unauthorised transactions, cancelled recurring transactions, and merchants not delivering the goods or services.

By understanding the relevant government laws, bank policies, and the nature of the incident or scam that has occurred, consumers have the best chance of having their funds returned. 

What Determines Whether an Australian Bank Will Refund Scammed Money?

Whether Australian banks refund scammed money often depends on one important question: did the account holder authorise the payment, or did someone make the transaction without their permission? Although both situations may involve fraud, banks generally assess them differently.

Authorised Scam Payments vs Unauthorised Transactions

An authorised scam payment occurs when a victim approves a transfer because a scammer has deceived, manipulated or pressured them. The victim did not intend to lose their money, but the bank’s records may still show that they approved the payment. In these cases, the bank may attempt to recall the transfer or contact the receiving financial institution, but a refund is not automatic.

An unauthorised transaction occurs when someone transfers or spends money from an account without the account holder’s permission. The ASIC ePayments Code sets out rules for determining liability for unauthorised electronic transactions. Most Australian banks subscribe to the Code, although the outcome still depends on the circumstances of the case.

A refund may be more likely when the account holder did not contribute to the loss, protected their passwords and security codes, and reported the transaction promptly. However, every claim must be investigated individually.

Which Australian Bank Refunds Scam Payments?

There is no single Australian bank that guarantees refunds for every scam payment. CommBank, NAB, ANZ, Westpac and other banks assess claims according to factors such as:

• Whether the payment was authorised or unauthorised
• How quickly the scam was reported
• The payment method used
• What evidence the customer can provide
• Whether the transferred funds remain in the receiving account
• Whether the bank had an opportunity to identify or stop the payment

Australia’s scam-protection rules are also changing. In May 2026, banking was designated as one of the first sectors under the Scams Prevention Framework. Mandatory sector requirements are scheduled to commence on 31 March 2027. At the time of this update, these reforms should not be interpreted as a guarantee that every Australian scam victim will automatically receive reimbursement.

If a bank rejects a refund request, the customer can ask for the decision and reasons in writing. They can then use the bank’s internal dispute-resolution process and, if the matter remains unresolved, lodge a complaint with the Australian Financial Complaints Authority.

Does CommBank Refund Scammed Money?

CommBank accepts disputes concerning both authorised and unauthorised transactions. However, submitting a dispute does not guarantee that the money will be refunded.

According to CommBank’s published dispute process, successful disputes are refunded within three business days after the outcome is provided. Most disputes are resolved within three business days after pending transactions have been processed, while complex investigations may take up to 21 calendar days. Exceptional cases can take longer.

These are general transaction-dispute timeframes and should not be treated as a promise that every CommBank scam claim will succeed.

How Long Do Banks Take to Refund Scammed Money?

There is no standard refund timeframe across Australian banks. A bank may be able to attempt an urgent fund recall immediately, but investigating the claim can take considerably longer.

The timeframe may depend on the transaction type, the receiving bank, whether the money was transferred overseas, the evidence available and whether the funds have already been withdrawn or moved. Victims should contact their bank immediately and specifically request that it attempts fund recovery.

Can Banks Recover Scammed Money?

Banks may attempt to recall a transfer, contact the receiving institution or freeze funds that remain in the recipient’s account. However, once scammers have withdrawn or transferred the money elsewhere, recovery becomes considerably more difficult.

If a bank transfer was used to purchase cryptocurrency that was subsequently sent to a scammer, the bank cannot reverse a confirmed blockchain transaction. Victims can learn more about whether stolen crypto can be recovered or consider a professional cryptocurrency tracing investigation to identify where the assets travelled. Cryptocurrency tracing may provide actionable evidence, but recovery cannot be guaranteed.

How To Protect Yourself From Scams

Ultimately, the best option is to avoid scams in the first place, though this is much easier said than done. Remaining vigilant and taking steps to protect oneself online will reduce the chances of fraud. Always take time to understand to whom the money is being sent, and if this information is not available, this may be a sign of a scam.

Being cautious about sharing personal information online will help users stay safe, and reporting any suspicious activity can help protect other users. The Australian and UK governments have online resources to help protect users from scams. Understanding how scams work and how to spot a scam can go a long way to protecting yourself from scammers. Cybertace has many free online resources to help consumers stay safe. Check out our blogs, scam warnings, and online tools for more information. You can also report scams online through our online reporting tools.

How can Cybertrace help?

If you have been the victim of a scam facilitated through a bank in Australia, a private cyber investigations firm like Cybertrace can act quickly to investigate the incident and collect evidence. It is important to capture evidence while it is still fresh. However, most financial institutions and law enforcement agencies are overwhelmed with scam reports, and in many situations, it can take up to 12 months to arrive at any level of resolution.

By engaging Cybertrace to investigate your case and identify evidence and intelligence as quickly as possible, the results can be escalated through financial institutions or law enforcement in a more timely manner.

By identifying the nature of the scam, Cybertrace can assist victims in understanding the best path to take to recover funds, whether that involves pursuing a refund from the bank, gaining assistance from law enforcement, or going after the criminals directly.

For victims in the UK, we can also assist with Authorised Push Payment (APP) investigations and guide you through the refund process via the correct channels. For further reading, please refer to our Authorised Push Payment (APP) blog or contact our team of investigators for advice.

Cybertrace is here to help, so if you think you have been the victim of a scam or if you have questions about

recovering stolen funds, reach out to one of our scam specialists today.