£1.7 Million Recovered From a Collapsed Investment Scheme - Refundee Case Study
One Client Lost £1.7 Million to a failed Investment scheme. Here's How We Got It Back.
If you have lost money to an investment scheme that turned out to be fraudulent, you are probably wondering if you will ever see that money again. Most victims assume the answer is no.
This case study shows why that assumption is often wrong and what happened when one of our clients came to us after losing £1.7 million to a sophisticated Ponzi-style investment fraud.
What Happened: The Investment That Was Never Real
Our client was targeted through social media advertisements on Facebook and Instagram, a growing route for investment fraud in the UK. After seeing an advert for an investment company, they searched online and found what appeared to be a credible, legitimate investment company, complete with positive reviews.
The investment company claimed they were experts within trading they could make high returns on the stock market.
They conducted their own due diligence. The company had a professional website. The reviews looked genuine. A so-called 'financial advisor' contacted them, demonstrating apparent expertise and presenting a polished investment platform with consistent, visible returns. They attended webinars and networking events conducted by the company and even met other investors of the scheme.
Our client was offered a contract with the investment company who would then use the invested funds within forex trades to create large profits. The company provided legitimate looking contracts and brochures, just like a legitimate company would do.
Over the following months, our client was guided and gradually pressured into investing increasingly larger sums. Early returns were paid out on schedule, which created a false sense of trust and security. They received regular updates through their ‘financial advisor’ usually through WhatsApp & Email(s). This is a deliberate social engineering tactic used in Ponzi schemes: use new investor funds to pay earlier investors, manufacture confidence, and draw in larger deposits.
Then, without warning, the returns stopped.
The Collapse - and the Truth Behind It
When payments stopped arriving, the company offered a series of excuses. Delays. Technical issues. Liquidity problems. As concern grew from our client, the reality became impossible to ignore.
The investment was not what was presented. Only a small part of funds were transferred to a trading platform and the majority of invested funds were used to pay back earlier investors, including our client. Instead, the funds had been paid into the directors accounts and used to finance the fraudsters' own lifestyles, the definition of an unauthorised investment scheme operating as a fraud.
For our client, this was not just a financial loss. It was devastating. The psychological impact of being scammed can be as significant as the financial one. A lifetime of savings had gone into an investment they had researched carefully and trusted completely. They had done everything right. The fault was entirely with the fraudsters and, crucially, with the failures in the banking system that allowed the fraud to occur.
How Refundee Built the Case For Recovery
When our client first contacted us, they had no clear path to getting their money back. That is where our expertise made the difference.
Step 1 - Investigation: Our team conducted a thorough investigation to establish the fraudulent nature of the scheme, gathering evidence across multiple investors who had been affected. If you have been the victim of an investment scam, reporting it to Report Fraud is an important early step, it creates an official record that can support your reimbursement claim.
Step 2 - Building the bank liability argument: Under UK banking regulations governing Authorised Push Payment (APP) fraud, banks have specific obligations to protect customers from this type of fraud. We constructed detailed arguments for why the sending bank should bear liability for the losses.
Step 3 - Financial Ombudsman escalation: We escalated the case to the Financial Ombudsman Service (FOS), presenting our evidence and regulatory arguments to make the case for full reimbursement.
Step 4 - Recovery: Our client recovered £1.7 million in full - plus interest on top.
What Makes this Recoverable? Understanding APP Fraud Rules
Many investment scam victims don't realise their losses may be recoverable under UK banking regulations, specifically the rules around Authorised Push Payment (APP) fraud.
APP fraud occurs when a victim is manipulated into authorising a payment to a fraudster. Even though the victim technically 'approved' the transfer, the law recognises that victims of sophisticated fraud were deceived and that banks have responsibilities to detect and prevent these losses.
Key protections available to victims include:
Contingent Reimbursement Model (CRM): Voluntary industry code requiring participating banks to reimburse victims of APP fraud in most cases for payments made after May 2019.
PSR Mandatory Reimbursement: Came into force in October 2024, UK banks are now legally required to assess claims for reimbursement from customers who have lost money through APP fraud. This represents a significant shift in consumer protection and is the regulatory framework that underpins cases like this one.
Could You Be Eligible to Claim?
If you transferred money from a UK bank account as part of what you now believe was an investment scam, you may have grounds to pursue reimbursement.
You may be eligible if:
You transferred money from a UK bank account to what you believed was a legitimate investment
The investment was promoted through social media, cold calls, or online advertising
You were guided by someone presenting themselves as a financial advisor or investment professional
The investment has since collapsed, become uncontactable, or been confirmed as fraudulent
Start your free eligibility assessment here
Why Refundee?
Refundee is authorised and regulated by the Financial Conduct Authority (FRN: 937096). We are specialists in APP fraud recovery and UK banking regulations, and we have recovered over £130 million for clients to date with a large proportion specifically from unauthorised investment schemes.
We operate on a no win, no fee basis. You pay nothing upfront. We only charge a fee if your case is successful.
Our team manages every aspect of the process, from the initial eligibility assessment through investigation, bank correspondence, and Financial Ombudsman escalation where needed. You do not need to know how to navigate banking regulations or the complaints process. That is our job.
Start Your Free Eligibility Assessment
If you have lost money to an investment scam, don't assume it is gone for good. Contact Refundee for a free, no-obligation eligibility assessment.
Start your free eligibility assessment here
You can also read verified reviews from our clients on Trustpilot or find out more about our fees on our website here.
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.
Frequently Asked Questions (FAQs)
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In many cases, yes. If you transferred money from a UK bank account to a fraudulent investment scheme, you may be eligible to claim reimbursement under APP fraud rules.
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APP fraud occurs when you are deceived into authorising a bank transfer to a fraudster. Even though you technically approved the payment, UK banking regulations recognise victims of deception and provide routes to reimbursement.
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Timelines vary depending on the complexity of the case and whether escalation to the Financial Ombudsman is required. Refundee manages the process end-to-end on your behalf.
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An unauthorised firm is one that offers financial services in the UK without being registered with the FCA. It is illegal to do so, and investors who deal with unauthorised firms have significantly fewer protections. The FCA maintains a warning list of firms flagged as potentially operating without authorisation.
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A bank rejection is not the end of the road. Refundee regularly escalates cases to the Financial Ombudsman Service, which provides an independent review. Many cases are won at this stage.
