Identity theft and scams: how to get your money back

If money has been taken from your bank account without permission, there are certain steps you should take. This applies whether your identity has been stolen, your card cloned, there’s been an unrecognised bank transfer or you’ve been the victim of a scam.

Find out more about spotting, avoiding and reporting scamsOpens in a new window on the FCA website.

If someone has used your card in a store or online, you’re covered under the Payment Services Regulations.

This means you must be refunded immediately if you’ve had money taken from your account without your permission.

Always report the loss of your debit card, or any unauthorised payments, as soon as possible. You’re liable for any spending before it has been reported, up to a maximum of £35.

If someone makes unauthorised payments on your credit card, you’re covered under the Consumer Credit Act.

This means you should be able to claim your money back as you’re jointly liable with your credit card issuer.

As with debit cards, you may be liable for the first £35 spent if the card is lost or stolen. However, this is often waived if you report it quickly and were not careless, such as giving someone your PIN.

Find out more in our guide Credit and debit card protection explained.

If your identity has been stolen, the criminal may try to open bank accounts, or apply for credit cards and loans in your name.

You might start to get letters from banks you don’t have accounts with, credit cards you’ve never applied for, or from debt collectors you know nothing about. If this happens, contact your bank straight away and make sure you keep all correspondence.

Also contact credit reference agencies if someone has applied for a loan or credit card in your name. The main three to contact are:

• TransUnionOpens in a new window
• EquifaxOpens in a new window
• ExperianOpens in a new window

If you think someone has got your information by stealing your post, or by redirecting mail, you can also call Royal Mail customer services on 03457 740 740Opens in a new window.

Provided you’ve done nothing to compromise the security of your account, you should get your money back. But this isn’t guaranteed.

Refunds can be delayed or refused if the bank has reasonable grounds to think you’ve been grossly negligent, such as telling someone your PIN or password. However, banks can’t simply say because your PIN or password were used that the payment was authorised.

Banks can also refuse to give a refund if you tell them about an unauthorised payment 13 months or more after it left your account.

Find out more about unauthorised transactions, and what counts as negligence, on the FCA websiteOpens in a new window

Your bank might reject your claim for a refund if they believe they can prove that you have been grossly negligent or acted fraudulently.

This doesn’t have to be the end of the matter though – you can complain to the bank.

If you’re not happy with the way your complaint has been dealt with, you can then take your complaint to the Financial Ombudsman ServiceOpens in a new window

There are many types of identity scams, including texts, letters, or even in person – but more and more, these criminals will target you online.

They can take many forms, and usually appear to be a legitimate opportunity. Scammers are clever and know all the tricks to get you to hand over your information.

Knowing how to recognise scams is the best way to protect yourself. Here are some things to be wary of:

• Your bank calls asking you to move money
  Possibly the most common bank scam is getting you to transfer money out of your account, often into a ‘safe account’. Banks will never ask you to do this. If you’re suspicious of someone saying they’re from your bank, hang up and call them back on the number printed on your card.
• Cold-calling
  If somebody contacts you claiming to be from a known company and offers you a product or deal, avoid signing up there and then. Instead, contact the company to ask if it is legitimate (don’t use any contact details they give you).
  
• You’re asked to pay before you receive an item or service
  For example, an upfront fee before a loan is paid into your account.
• The company is difficult to contact
  If a firm doesn’t allow you to call them back, or their contact details are only mobile phone numbers or a PO box address.
• Mistakes and typos in emails and text messages
  Most emails and texts from major companies are proofread and checked. Also watch out for email address that have random characters and letters, and emails encouraging you to click a link in the message.
• If it sounds too good to be true, it usually is
  For example, a company is promising a refund if you click on a link and enter your bank details.
• If you’re asked for passwords and PIN numbers
  A bank or legitimate company will never ask you for your PIN number or any online banking passwords.
• If you’re pressurised to make a quick decision
  Scammers like to involve a sense of fear or urgency as a tactic to bully you into action. Never be rushed into making a decision.
• Winning a competition you didn't enter
  Avoid competitions to win prizes on pages that are very new, or not the official brand page. Be wary if you get a message from a stranger, brand or even a friend telling you you’ve won a competition that you don’t recall entering.
• The website doesn’t have a secure link
  It’s easy to be fooled by a fake website. When using web pages, make sure the site has a secure link by checking there’s a padlock symbol in the browser and the link starts with ‘https://’.

If you’re worried whether a financial company is genuine, always check it appears on the Financial Services RegisterOpens in a new window