Bank Transfer Scams: How to Protect Yourself and What to Do in Case of Fraud

Bank transfer scams have become increasingly common in the UK, causing significant losses for citizens and businesses.

These scams occur when criminals convince victims to transfer money directly to fraudulent accounts, often through what is known as Authorized Push Payment (APP).

With the evolution of banking fraud, new protection rules were implemented starting in October 2024 and will continue to expand in 2025.

Let’s explore what these scams are, how you can recognize them, what the new protection measures are, and what to do if you fall victim. Check it out!

What are Bank Transfer Scams?

Bank transfer scams occur when fraudsters manipulate a person into making a bank transfer voluntarily, without realizing they are sending money to criminals.

Unlike frauds where hackers break into bank accounts, this type of scam involves the victim themselves being deceived into making the transaction.

One of the most common schemes is the Authorized Push Payment (APP), in which the fraudster convinces the victim to make a transfer via internet banking or banking apps.

Often, scammers pose as bank representatives, suppliers, friends, or family members, creating convincing stories to induce payment.

They may claim that the victim’s account has been compromised and that it is necessary to transfer funds to a secure account, or they may pose as a legitimate company sending a false invoice.

Understand the New Protection Rules

According to a report by the Payment Systems Regulator, released in 2024, for every 1 million transactions of Monzo bank customers in 2023, 131 were reported as APP scams.

Given the significant increase in bank transfer scams, UK financial regulators have established new consumer protection guidelines.

Starting from October 2024 and throughout 2025, banks will be required to enhance security and reimburse victims of fraud within 5 business days.

The idea is to ensure greater security for customers and discourage criminals who exploit vulnerabilities in the banking system.

What are the Limits for Protection?

The new guidelines dictate that banks offer refunds to victims of APP scams, provided it is proven that the victim took reasonable measures to avoid the fraud.

Some suspicious transactions will be automatically blocked, and banks must clearly inform about the risks of transferring to new accounts.

There is also a requirement for banks to conduct more detailed investigations before concluding that a customer is not entitled to a refund, ensuring a fairer process for victims.

However, it is worth noting that the maximum amount each customer can claim is £85,000. In cases where victims lose more than this limit, it is necessary to file a complaint with the Financial Ombudsman.

How to Recognize Attempts at Bank Transfer Scams?

Fraudsters use various techniques to deceive their victims, and it is essential to be alert to warning signs. If you receive an unexpected contact from your bank requesting urgent transfers, this may be a scam.

Scammers often create a sense of urgency to prevent the victim from having time to reflect before making a decision.

Another common strategy involves sending emails or text messages containing suspicious links. Clicking on these links can direct the victim to a fake website that mimics a legitimate bank’s site, where their banking credentials are stolen.

It is also common for suppliers or service providers to claim that there has been a change in bank details and request payment to a new account. Before making any payment, it is essential to confirm directly with the company whether the change is legitimate.

Scammers also exploit emotions to induce payments. Investment proposals that seem too good to be true are often frauds.

Moreover, messages supposedly sent by friends or relatives asking for money for an emergency should always be verified through another contact method before any action.

How to Protect Yourself from These Types of Scams?

To avoid falling for a bank transfer scam, it is crucial to take some basic precautions. Before making a transfer, always carefully check the account details of the recipient.

If you are paying a supplier, contact the company directly using an official phone number and not the details provided in a suspicious email or message. 

Never share your banking details or passwords with third parties, and avoid clicking on unknown links sent via email or text messages.

Similarly, if you receive an unexpected payment request, especially if there is a sense of urgency, take time to verify its authenticity.

An effective protective measure is to activate two-factor authentication on your banking app whenever possible. This way, even if a criminal gains access to your password, they will not be able to complete the transaction without the additional verification.

What to Do If You Fall Victim to a Bank Transfer Scam?

If you realize that you have fallen for a bank transfer scam, acting quickly increases your chances of recovering your money and preventing further fraud. Here are some important tips.

Identify the Transfers

Check your bank statement for all details of the transfer made, including amounts, dates, and beneficiary account information.

If possible, note the exact time of the transaction, as this can help in attempting to trace the funds.

Gather All Information

Note and save any communication you had with the fraudsters, including emails, messages, and phone numbers used by them.

Thus, screenshots of conversations and call logs can serve as important evidence when reporting the case to your bank and authorities.

 Contact Your Bank or Provider

Immediately inform your bank about the scam.

Many banks have reimbursement policies for customers who fall victim to this type of fraud and can act quickly to block suspicious transfers or recover funds still available in the recipient’s account.

Contact the Bank to Which You Sent the Money

If the money was sent to another financial institution, contact that bank to report the fraud.

Some institutions may freeze the recipient’s account if alerted promptly, increasing the chances of recovering the funds.

File a Complaint

Report the scam to Action Fraud, the UK’s cybercrime center. Additionally, if your bank does not provide adequate support or refuses to reimburse a legitimate scam, you can turn to the Financial Ombudsman Service, which can mediate the situation and help resolve the dispute.

Prevention and quick response are the best weapons against bank transfer scams. 

With new regulations and increased awareness, it is hoped that fewer people will fall victim to this financial fraud.

However, it is up to each consumer to always remain vigilant and adopt safe practices to protect their money. Be suspicious of every detail!

For more financial information, continue following our site. Also, read this post where we explain how money transfer credit cards work.