Losing your card, finding that someone has accessed
your bank account or losing money through a scam can be distressing. But
if you are a victim of identity theft or a scam there are some
safeguards to help you get back the money you have lost. Find out what
you might be liable for and how to get money refunded.
Identity theft – What are you liable for?
Identity theft is when your personal details are stolen and identity fraud is when those details are used to commit fraud.
If money has been stolen from your bank account, or your debit or
credit card has been used fraudulently, in most cases, you should be
able to get that money back.
How quickly your bank has to refund the money might depend on whether:
- The money stolen was your own money (so from your own bank account, for example)
- Someone has fraudulently used a credit facility in your name (for example a credit card)
What happens if money was stolen from your debit card?
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Tell your bank or building society as soon as you think your bank
card might have been stolen, or that someone got hold of your account’s
security details.
If money is stolen from your debit card, then the relevant piece of legislation is the Payment Services Regulations.
It says you must be refunded immediately if you have had money taken from your account without your permission.
Remember that:
- You’ll be liable for any unauthorised withdrawals made before you tell your bank or building society, up to a maximum of £50,.
- If the bank has reasonable grounds to think you have been
grossly negligent with the security of your account or tried to commit
fraud , it can delay refunding while it investigates.
- You can be liable for all the losses, but realistically this
will only apply if the bank or building society can prove you were
grossly negligent. This means more than ordinary carelessness, for
example telling someone else the PIN for your bank card, or leaving it
written where anyone can see it in your office or workplace.
-
Unless the bank can prove you’re liable it must refund
the money and put your account back in the state it would have been if
the money had not been taken. This means that any interest or charges
you have paid because of the fraud must also be refunded.
You won’t be liable for any losses once you have reported that your
card has been stolen, or if you report that someone else might have got
hold of the security details of your account.
What happens if the money was stolen from your credit card?
If the money stolen is on credit, the Consumer Credit Act applies.
This legislation states that for any unauthorised transactions the
cardholder might be held liable for the first £50 spent if a card is
lost or stolen.
Again many banks and building societies will waive this.
- Once the theft has been reported to the card provider, the cardholder is not liable for any further money spent.
- In reality your bank or credit card provider might not
charge you for any money spent by fraudsters, unless it can prove you
have been negligent.
- Report any lost or stolen cards or unauthorised transactions to your card provider as soon as you spot them.
If your bank rejects your claim of identity theft
Your bank might reject your claim for a refund if it believes it can
prove that you have been grossly negligent or acted fraudulently.
This does not 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 Service.
Identity scams – What are you liable for?
Unfortunately, if you’re a victim of a scam you might not get your money back.
However, depending on how soon you realised you might have been the
victim of a scam and the payment method used, it might be possible for
your payment service provider to cancel or reverse the transaction.
The card examples relate to where you authorised a transaction.
If you didn’t authorise the transaction then your rights are the same as described earlier in this guide.
If you paid by credit card and became a victim of identity fraud
If you’ve spent over £100 and up to £30,000 on a credit card, the
Consumer Credit Act means you should be able to claim that money back as
your credit card issuer is jointly liable with whoever you’re paying if
something goes wrong.
Contact your credit card provider as soon as you realise you’ve been scammed.
Some scammers are now taking advantage of this protection by setting
up fake websites selling tickets to major sporting events or concerts.
Once they have your money, they will say there has been “a problem
with a supplier” or similar and tell you to claim the money back from
your credit card provider.
If you paid by debit card and became a victim of identity fraud
Some debit card providers offer a Chargeback scheme where they might
be able to recover some or all of your money for you after looking into
it.
Contact your card provider as soon as you realise you’ve been scammed.
If you are spending over £100 and you are not 100% sure about the purchase, use a credit card to e
nsure you are protected.
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