Unauthorised Scams

In the minefield of financial scams, understanding what constitutes an ‘unauthorised fraud’ is crucial. We’re here to shed light on this complex topic and highlight ways we can help if you’ve fallen victim to these insidious scams.

What is Unauthorised Fraud? This term refers to situations where you’ve been charged for a payment you neither consented to nor intended to make. It might be a case of your card being used without your consent, your phone being stolen and used for transactions, or someone tricking you into making an unwanted payment.

Distinguishing Between Scam Types: It’s important to understand that if you’ve given consent to a transaction that turns out to be fraudulent, it’s treated differently, known as an Authorised Push Payment (APP) scam.

Examples of Unauthorised Transactions: Fraudsters employ various techniques to conduct transactions without your consent. You may have seen our discussion on this topic during the BBC’s Watchdog segment of the One Show. Examples abound, but it’s crucial to understand that fraudsters are continually seeking loopholes in the banking systems.

So, What Protection Do You Have?

Refunds by Banks: In essence, banks should refund individuals by the close of the next business day unless they can prove the customer was grossly negligent, fraudulent or had authorised the payments. It’s the bank’s responsibility, not yours, to prove this. However, you need to cooperate fully with the bank’s investigation.

Understanding ‘Gross Negligence’: This term refers to extreme carelessness, like writing your PIN on a piece of paper and keeping it in your wallet next to your bank card. It’s a high bar for the bank to prove. We’ve seen many cases where banks have incorrectly applied this standard to people who were not at fault. We’ve also seen banks wrongly accuse customers of misrepresenting the chain of events.

Remember, it’s essential to stay informed about the different types of scams and your rights as a customer. We’re here to help guide you through this complex landscape.

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