Do Banks Refund Scammed Money in Australia and the UK?

We’re often asked, do banks refund scammed money? Unfortunately, this is not a straightforward answer and varies greatly between Australia and the UK. As with most countries, scams are a growing concern in Australia, and victims can suffer significant financial losses. However, unlike the UK, there is no legal requirement for Australian banks to refund scam victims.

Advocates and consumer groups in Australia have been calling for the government to adopt better protections for scam victims and to force banks to reimburse them. The Australian Competition and Consumer Commission (ACCC) has also recommended that banks should reimburse customers who have fallen victim to scams.

Will Banks in the UK Refund Scammed Money?

In contrast, the UK government has taken steps to protect consumers from scams. Banks in the UK are responsible for protecting their customers’ money and must reimburse them if they have been the victim of a scam. 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.

Will Banks in Australia Refund Scammed Money?

In Australia, banks are encouraged to have a voluntary code of practice for dealing with scams, but this is not legally binding. The Australian Banking Association provides resources and information on how to protect oneself from scams and how to report them, but banks are not required to reimburse scam victims.

While Australia may not have a legal requirement for banks to reimburse scam victims, some banks do have policies in place to reimburse customers who have fallen victim to certain scams. It’s essential to check with your bank to see if they have such policies in place and what requirements must be met to qualify for a refund.

While banks in the UK must refund certain scam victims, unfortunately, this is not the case in Australia. Advocates and consumer groups in Australia are calling for better protections for scam victims and for banks to reimburse customers who have fallen victim to scams. It’s crucial for consumers in both countries to be vigilant and take steps to protect themselves from scams, such as being cautious about sharing personal information online and reporting any suspicious activity to their bank or the appropriate authorities.

How can Cybertrace help?

Should you be the victim of a scam facilitated via a bank, or multiple banks in Australia, Cybertrace as a private cyber investigations firm can assist by acting on your case quicker than most banks and law enforcement organisations. It is particularly important to capture evidence while it is still fresh, however, most banks 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 this time the leads have either reduced or disappeared completely. By engaging Cybertrace to investigate your case and capture identified evidence and intelligence, the results can be escalated through the bank or law enforcement in a more timely manner.

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.

Tags: Do banks refund scammed money, Australia, UK, Authorised Push Payment (APP)