Your Bank Won't Refund Stolen Money? Here's What to Do

Have you been told by your bank that they won’t refund your stolen money? You’re not alone. It happens frequently and is a common frustration faced by scam victims. However, a bank refusal is not final, and many scam victims still recover their stolen money, even when their bank has said no.  

The truth is that banks regularly deny fraud victims reimbursement for unfair reasons, and according to UK Finance’s annual fraud report, 59.53% of Authorised Push Payment (APP) fraud victims were denied reimbursement by their bank.  

In this page, we will cover what you can do if your bank refuses to refund your money, your rights regarding a refund, and how you can challenge the refusal.

Why won't my bank refund stolen money?

Banks regularly refuse to refund your money for various reasons, such as; you authorised the payment, you ignored the bank's warnings, insufficient evidence of fraud, you reported it too late, and many other reasons.  

Banks usually consider unauthorised fraud versus authorised push payment (APP) fraud when assessing reimbursement.  

Unauthorised fraud occurs when a criminal takes money without your knowledge, whereas authorised push payment (APP) fraud means you authorised the payment yourself, but only because you were deceived by a fraudster.  

What this means for you: Unauthorised fraud is generally easier to recover your money, if it is clear that the fraudster took money without your knowledge, and according to UK Finance, 98% of victims were refunded in 2025.

Authorised push payment (APP) fraud is generally where banks are more likely to deny reimbursement, often for unfair reasons.  

Your bank’s reason for refusing to refund you is often incorrect. Many people assume that just because their bank said no, it means they have no rights to reimbursement, but this is a common misconception that prevents scam victims from claiming their money back.

Can a bank refuse to refund money?

In many cases, yes, a bank can refuse to refund money. All banks have their own internal processes that decide how fraud cases should be considered and whether a victim should be refunded. Data from UK Finance shows that of £576.4 million of APP fraud losses, only 61.47% was returned to the victim.

But for many scam victims, that is not the end of the matter, and if your bank has said no, you can challenge them! Many banks get this wrong, and just because your bank said no, it doesn’t mean you are out of options.

Major banks such as; Lloyds, Santander, Natwest, HSBC, First Direct, Monzo and many more have obligations to protect you, so don’t assume a no from your bank is the final decision. 

You don’t need to use a specialist claims management company like Refundee to challenge your bank, you can do this yourself for free as well. 

However, if you do want Refundee to review your case on a no-win, no-fee basis, then you can complete our claim form for a free case review.

Do banks have to reimburse stolen money?

In many cases, yes. Banks have obligations to protect you if you have lost money to fraud, and the rules differ depending on the type of fraud that occurred, i.e. unauthorised or authorised push payment (APP) fraud.

In unauthorised fraud, banks are supposed to refund people by the end of the next business day unless they can show that the customer has been grossly negligent, is acting fraudulently or authorised the payments. 

The burden of proof is on the bank and not the customer to do this, but, you need to cooperate fully with the bank's investigation.

Gross negligence is a high bar for the bank to prove, however Refundee has seen many examples of banks incorrectly applying the gross negligence standard to people who were not at fault for what happened.

How does this differ from APP Fraud?

For Authorised Push Payment fraud you still have protections and since new Mandatory Reimbursement Rules were introduced in October 2024, victims now have a legal right to reimbursement. 

This was a major shift, and it benefits scam victims.

Refunding scam victims is now a legal obligation, not a goodwill gesture. Most APP fraud victims must be refunded by their bank usually within 5 business days. 

Key rules of the Mandatory Reimbursement model:

• Covers UK to UK payments via faster payments and retail CHAPS payments

• Maximum refund of £85,000 per claim

• Banks can deduct an excess of £100 per claim (This does not apply to vulnerable customers)

• Victims must report the the scam and provide the info promptly 

• Banks cannot delay claims indefinitely

• Applies to individuals, charities and micro-enterprises 

What this means for you: If you were manipulated into transferring money, getting your money back from your bank will likely mean they have to reimburse you, and quickly.

What to do when your bank won't refund stolen money

If your bank won’t refund you, then you have a legal right to challenge them and escalate your case to the Financial Ombudsman Service (FOS). The Financial Ombudsman Service (FOS) exists for this exact reason. The FOS is an independent service brought in by the UK Government to assess whether banks are abiding by their obligations.  

What this means for you: If the FOS decides in your favour, then they can instruct the bank to repay you.

Here are the steps you can take to challenge your banks refusal:

1. Complain to your bank

   • You can do this in writing, email or over the phone. You must provide all the evidence that the bank requests and the bank must provide a response within 15 days whether they are upholding or rejecting your complaint. 

2. Request a final response letter

   • If the bank rejects your complaint then you can request a final response letter. In the letter it will state the reason for rejection and your rights to escalate this further to the Financial Ombudsman Service.

3. Escalation to the Financial Ombudsman Service

   • Once you receive your final response letter you can now escalate your case to the Financial Ombudsman Service free of charge. Important: You must escalate this to the Financial Ombudsman Service within 6 months of receiving the final response letter otherwise you may lose your rights to complain.

Read our full guide on how to complain yourself.

How Refundee can help:

Challenging a bank refusal and navigating the FOS process can be stressful, especially when you are dealing with the emotional impact of being scammed. So, if you do want genuine experts to take on your case, Refundee is here. 

We are regulated and authorised by the Financial Conduct Authority (FRN: 937096) and we specialise in fraud recovery and the banking and Financial Ombudsman Service process.

To date, we have recovered over £140 million for our clients so far, with many of these clients being told no by their bank before they found Refundee. 

We work on a no-win, no-fee basis so you pay nothing upfront and only if we are successful. 

If you would like a free case review then you can start your claim with us. We will be honest if we can help and provide guidance and support throughout the process. 

How the process works:

1. Stage 1 - Our Investigation

   • Our specialist Fraud Investigators assess your case and let you know if we can help. 

2. Stage 2 - Bank submission 

   • If you haven’t complained directly to your bank yet, we can still help. We prepare your bespoke fraud recovery report and submit it to the bank.

3. Stage 3 - FOS escalation

   • If the bank refuses your claim, we submit a new report to the Financial Ombudsman Service who makes a final judgement on the case.

How long does it take a bank to refund stolen money?

Refunds can vary depending on the circumstances of the case and how you paid. If you were the victim of unauthorised fraud, your bank must reimburse you within the next business day. For Authorised Push Payment Fraud (APP) most victims must be refunded within 5 business days. 

Both timeframes are the ideal scenario for a refund, however as we covered in this article, banks regularly deny reimbursement to victims and force them to go through the Financial Ombudsman’s process of recovery.

At Refundee we see the FOS process timelines differ drastically depending on the circumstances of the case. Usual timelines at the Financial Ombudsman Service can look like this:

• Initial wait for your case to be reviewed - 3-6 months

• The Investigator at FOS reviews your complaint - 1-3 months (can be longer depending on the complexity of the case)

• If the FOS investigator rejects your case, or the bank appeals, an Ombudsman reviews the case - 3-6 months

• Final decision - Anywhere from 3 months - 2 years in some cases

The process can be lengthy and stressful, which is why Refundee exists to help you navigate the process as easily as possible.

You can do this process yourself for free, we have written a guide on how to claim yourself. 

Read more about our clients' experiences on our verified TrustPilot reviews.

Frequently Asked Questions (FAQ’s)

• What to do when a bank won't refund stolen money?

  • If you haven’t already, launch a formal complaint with your bank, receive a final response letter and then escalate the case to the Financial Ombudsman Service for free. You must escalate the complaint to the Financial Ombudsman within 6 months of receiving the final response letter from your bank. 

• Do banks reimburse you for stolen money?

  • In many cases yes, and under Mandatory Reimbursement rules brought in October 2024, banks are now legally required to reimburse some fraud victims in certain circumstances. 

• How long does it take a bank to refund stolen money?

  • Refunds can vary depending on the circumstances of the case and how you paid. If you were the victim of unauthorised fraud, your bank must reimburse you within the next business day. For Authorised Push Payment Fraud (APP) most victims must be refunded within 5 business days.

• Can a bank refuse to refund money?

  • In many cases yes, a bank can refuse to refund money. All banks have their own internal processes that decide how fraud cases should be considered and whether a victim should be refunded. Data from UK Finance shows that of £576.4 million of APP fraud losses, only 61.47% was returned to the victim.

Conclusion:

If you have been scammed and your bank won’t refund your money then you still have options and it is not the end of the road. Banks regularly deny victims reimbursement for unfair reasons and you have a legal right to challenge their decision.

Refundee are specialists in challenging bank decisions and we have recovered over £140 million for our clients so far, with many initially being told no by their bank.

If you have been told no by your bank, you may still have rights for a refund.

More About Refundee

Here are the technical bits:

Refundee Ltd is a claims management company authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity FRN: 937096.

Registered with the Information Commissioner's Office; registration number: A8986071.

Registered office address: Refundee, 3rd Floor, 86-90 Paul Street, London, EC2A 4NE.  

Registered as a company in England & Wales; number: 12855931.