Do banks refund scammed money? Everything you need to know about the refund

Will a bank refund me if I get scammed?  

Banks can refund scammed money, but it's not guaranteed. Your chances depend on the bank's policies, the type of scam, how the payment method was made, and how quickly you report the fraud. 

In general:

• If the payment was unauthorized (for example, someone used your credit card details without your consent), banks are usually required by law to refund the money, provided you report the fraud promptly.
• If you authorized the payment yourself (for example, you transferred money to a scammer's account thinking it was legitimate), your refund rights are weaker. Banks will still investigate, but they may not be willing to refund your money.

The rules also vary by country:

• In the US, Regulation E covers unauthorized electronic fund transfers. For credit cards, liability is capped at $50, and for debit cards, you're liable for only up to $50 if you report the loss within two business days.
• In the EU, the Payment Services Directive 2 (PSD2) applies, limiting consumer liability to €50 unless you've acted fraudulently or with gross negligence.
• In the UK, the Payment Services Regulations and the voluntary Contingent Reimbursement Model Code (CRM Code) offer some protection.

Types of scams that banks might refund

Banks are generally more likely to return your money when the fraud involves payments you didn't authorize or mistakes on their side. Common types of scams and frauds where banks often issue refunds include:

• Card fraud. A credit card is one of the safest payment methods. If your card is stolen or your details are used without permission, issuers are usually required to reverse the charges once you report them. Debit cards also carry protections, but the rules and timelines are stricter.
• Account takeover. If a criminal gains access to your online banking and transfers funds without your consent, this is treated as an unauthorized payment.
• Direct debit fraud. You may be able to reverse payments set up from your bank account without your approval.
• Check fraud. If someone alters, forges, or cashes a stolen check linked to your account, most banks will treat it as an unauthorized transaction and refund you after verifying the fraud.
• Bank system errors. If a bank's systems are compromised or if it processes a fraudulent transaction due to its own error, it's typically liable for the loss.

When might banks refuse a refund?

In some situations, your bank may decide you're not entitled to a refund:

• You authorized the payment to the scammer. If you were persuaded to send money yourself (such as through a Cash App scam), banks often classify these as "authorized push payments." The same applies to transfers made through payment apps like Venmo. If it was a wire transfer, contact your bank immediately — in rare cases, they may be able to reverse the transaction if it hasn't cleared yet.
• You delayed reporting the scam. If you wait weeks or months before telling your bank, it may refuse the refund on the basis that prompt reporting could have prevented the loss.
• The bank believes you were grossly negligent. For example, if you gave your online banking password to someone claiming to be from your bank or ignored multiple fraud warnings during the payment process.
• The lost funds can’t be recovered. Even if the bank accepts that you were scammed, it may not be able to trace or recover the money if it has already been withdrawn or moved overseas.

Note: Negligence also includes sharing sensitive banking details, even something as simple as your account number. If you're wondering how risky that can be, see our guide on what someone can do with your bank account number.

What to do if you get scammed

Acting as soon as possible is the best way to stop further losses and get your money back if you get scammed.

Immediate steps to take

The first hours after discovering a scam are critical. To increase the chances of recovering your money, start with these urgent steps:

• Contact your bank or credit card company. Tell it you believe you've been targeted by internet fraud, share details about the payment, and ask it to refund the charges.
• Freeze your credit or bank account and block your card. If your credit card details or online banking login are compromised, request an immediate block to make sure fraudulent transactions don't happen again. 
• Contact the payment app provider if you used one. Depending on the app, you may be able to cancel pending transactions, file a dispute against a seller, or report unauthorized charges. If the app is connected to your credit or debit card, report the fraudulent transaction directly to your credit card issuer or bank.
• Contact the gift card issuer. If you sent scammers gift card codes (for example, from Amazon, Apple, or Target), contact the issuer immediately. If the balance hasn't been redeemed, some companies can still cancel the cards and return the money.
• Change your online banking credentials. Update your passwords and turn on two-factor authentication (2FA) to stop the scammer from re-accessing your bank account.

Collect and preserve evidence

Evidence will help your bank's fraud team investigate and may be useful if you need to escalate your claim later.

• Document everything. Save proof by taking screenshots of money transfer receipts, downloading chat histories, and storing emails or text messages. Keep everything in a secure location and consider printing backup copies for extra safety.
• Record the scammer's details. Write down phone numbers, email addresses, website URLs, and payment account details. Even if they are fake, they can help link your case to other fraud reports.

Report the scam

In addition to informing your bank:

• In the US, report fraud to the Federal Trade Commission (FTC) and your state attorney general. The FTC also provides clear guidance on how to report identity theft and offers a personalized recovery plan through IdentityTheft.gov.
• In the EU, report to your national consumer protection authority or law enforcement.
• In the UK, contact Action Fraud (the national fraud and cybercrime reporting centre).

Reporting helps authorities track scam patterns and may help you get your money back.

How do banks refund scammed money?

When you report the fraud, your bank will follow an investigation process:

1. Initial assessment. It will take your statement and review transaction details to determine whether it appears unauthorized or authorized under false pretences.
2. Transaction recall. For wire transfers, it will attempt to recall the payment from the recipient's bank. For debit or credit card transactions, it may initiate a chargeback via the card network.
3. Fraud investigation. The bank may request supporting documents, interview you, and check for signs of negligence or complicity.
4. Decision. You'll receive a written outcome explaining whether you'll be refunded in full or in part.

How long do banks take to refund scammed money?

Getting fraud resolved through your bank or credit card issuer is usually much quicker than going through a full recovery process after identity theft. But the time it takes for a bank to refund money varies depending on how the payment was made and how complex the fraud is.

• Credit card fraud: Many banks refund within 5–10 business days after confirming the transaction was unauthorized.
• Debit card fraud: For debit card users, refunds can take longer. Banks usually have up to 10 business days to investigate, though this may be extended if the case involves international transfers or more complex fraud.
• Wire transfer scams: If the bank can stop the payment quickly, you may get your money back within days. If the transaction has been cleared, the recovery process may take weeks.
• Chargebacks: Card network dispute processes can take up to 90–120 days.

In some jurisdictions, banks are legally required to refund unauthorized transactions by the end of the next business day after you report them, unless they have reasonable grounds to believe you acted fraudulently.

What if the bank refuses to refund you?

If your bank rejects your refund request, you still have options. The process may feel daunting, but you can take these steps to challenge the decision and push for a different outcome:

• Request a formal review. Contact your bank and ask it to reconsider, especially if you feel important details were overlooked.
• Make a complaint. If the bank maintains its position, submit a formal complaint. In many countries, banks must issue a final response within set time limits.
• Escalate to the authorities. If you're still unsatisfied, you can take the matter to a regulator or ombudsman. In the US, that's the Consumer Financial Protection Bureau (CFPB); in the UK, the Financial Ombudsman Service (FOS). These organizations will independently investigate and, in some cases, require the bank to compensate you.
• Report identity theft. If your personal details were stolen, file a report. In the US, the FTC's IdentityTheft.gov provides tailored guidance on recovery.
• Contact law enforcement. Even if you can’t get your bank to refund the money, filing a police report creates an official record that may support future legal action against the scammer.
• Seek legal advice. If the loss is significant, consulting a lawyer or fraud recovery specialist may help you explore other avenues. Although expensive, this step may be necessary if the fraud involved a large sum of money or caused lasting financial harm.

How to avoid online scams targeting your bank account

While banks can sometimes refund stolen money, prevention is far less stressful than recovery. Protecting your information and staying alert to online scams greatly reduces your risk, so follow these tips to avoid online scams:

• Treat unexpected contact with suspicion. Scammers often pretend to be from your bank, a government agency, or a trusted company. Never click links or call numbers sent in unexpected messages.
• Learn common scam tactics. Knowing the red flags helps you react in time. Learn about the types of phishing criminals use and the warning signs to watch for.
• Be wary of cryptocurrency payments. Crypto transactions are rarely reversible. Once you send it, you can only get your money back if the recipient willingly returns it.
• Use payment apps carefully. Services like Zelle, Venmo, or Cash App are popular targets for fraud because it's more difficult for you to get your money back. If you use a payment app, limit money transfers to people you know and trust.
• Secure your account. Use a password of at least 12 characters, mixing letters, numbers, and symbols. 
• Use two-factor authentication (2FA). Adding a second verification step makes it much harder for scammers to access your accounts if they steal your password.
• Monitor your accounts regularly. Review your financial accounts at least weekly. The sooner you catch suspicious activity, the more likely you'll get your money back.
• Request your credit report from all three major bureaus. Review it carefully, and report any errors or missing information directly to the credit bureau that issued the report.
• Set up fraud alerts. Alerts on your credit reports, Social Security number (SSN), and bank accounts notify you quickly if someone tries to misuse your details.
• Consider identity theft protection. For example, NordProtect features include dark web monitoring for stolen personal data and alerts if your account details, passwords, or SSN are exposed. Also, you can receive a reimbursement if you lose money to an impersonation scam or fraudulent website purchase.