Online fraud is now among the most commonly experienced crimes in the UK, and the legal landscape around it has changed significantly. In particular, the rules on who bears the loss when someone is tricked into making a payment have shifted in favour of victims.
This guide covers the main offences, where liability falls, and what to do immediately if you are affected.
The Main Offences
- Fraud by false representation, under the Fraud Act 2006, covering dishonestly making a false representation intending to make a gain or cause a loss. This captures most phishing, romance and investment scams.
- Fraud by failing to disclose information where there is a legal duty to do so.
- Fraud by abuse of position, relevant where someone in a position of trust exploits it.
- Unauthorised access to computer material, under the Computer Misuse Act 1990, including accessing an account without permission.
- Unauthorised acts impairing operation, covering malware and denial of service.
- Making, supplying or obtaining articles for use in fraud or computer misuse.
- Money laundering offences, which is how “money mules” are prosecuted, often young people who believed they were only receiving a payment.
Scotland prosecutes fraud largely under its own common law of fraud alongside the computer misuse legislation, which applies UK-wide.
Who Bears the Loss
| Situation | General position |
|---|---|
| Unauthorised transaction, where you did not authorise the payment | You are generally entitled to a refund unless you acted fraudulently or with gross negligence |
| Authorised push payment fraud, where you were deceived into paying a criminal | Reimbursement requirements now apply to many such payments, subject to conditions and caps |
| Card purchase from a fraudulent seller | Chargeback, and Section 75 for credit purchases above the threshold |
| Investment or crypto fraud | Recovery is frequently very difficult; many platforms sit outside protection schemes |
| Business email compromise | Depends on the circumstances and the business’s own controls |
The authorised push payment position is the significant change. Where victims were once frequently told that authorising the payment ended the matter, reimbursement rules now place obligations on both sending and receiving banks in many cases. If you have been refused a refund on that basis, it is worth challenging.
What to Do Immediately
- Contact your bank straight away, using the number on your card or the official app rather than any number supplied by the person who contacted you.
- Ask for the payment to be stopped or recalled. Speed genuinely affects recovery.
- Change passwords on the affected account and anywhere you reused them, and enable two-factor authentication.
- Report it. Action Fraud covers England, Wales and Northern Ireland; in Scotland report to Police Scotland. Keep the reference number.
- Check your credit file for accounts opened in your name, and consider a protective registration with a fraud prevention service.
- Preserve evidence: messages, emails with full headers, transaction references, screenshots, and the account details you paid.
- Do not engage further with the fraudster, and be alert to recovery fraud, where a second party offers to retrieve your money for a fee.
Common Patterns Worth Recognising
- Impersonation of a bank, HMRC or a delivery company, creating urgency and directing you to a “safe account”. No genuine bank asks you to move money for safekeeping.
- Invoice redirection, where a supplier’s bank details appear to change by email. Always verify by phone using a known number.
- Romance fraud, developing over months before any request for money.
- Investment fraud, often using cloned firm details and professional-looking material. Check the Financial Conduct Authority register and its warning list.
- Purchase scams on marketplaces and social platforms, particularly where bank transfer is requested rather than a protected method.
- Money mule recruitment, presented as easy income for receiving and forwarding payments. This is a criminal offence with serious consequences.
If You Are Accused
People are sometimes investigated for offences they did not understand they were committing, particularly around money laundering and account misuse. If you are contacted by police or your account is frozen, take legal advice before giving an account, and ask for a solicitor if interviewed. Free legal advice at the police station is available regardless of means.
Reporting Bodies, Advice and Regional Provision
In the North West, court and legal coverage appears in the Manchester Chronicle and Liverpool Tribune. Yorkshire is covered by Leeds Angle, reporting from a substantial legal sector, plus Sheffield Voice and Bradford Daily.
Scotland operates a separate legal system, and coverage appears in Glasgow Bulletin and Edinburgh Scope. Northern Ireland, also a distinct jurisdiction, is reported by the Belfast Record.
Midlands courts and advice provision are covered by Birmingham Focus, Coventry Insight, Leicester Echo, Derby Digest and Nottingham Times. The Newcastle Brief and Hull Report cover the North East and Humber.
Southern provision is reported by Brighton Update, Southampton Ledger, Plymouth Wire and Bristol Outlook, with London covered by London Signals and Capital Outlook. Benefits and support policy is followed via DWP UK Latest News, with business and industry reporting in Trade Mirror.
Frequently Asked Questions
My bank says I authorised it, so no refund. Is that right?
Not necessarily. Reimbursement requirements now apply to many authorised push payment frauds. Complain formally, then refer the matter to the Financial Ombudsman Service, which is free.
Can I recover money sent in cryptocurrency?
Usually very difficult. Many platforms fall outside UK protection schemes and transactions are generally irreversible. Report it regardless, and be wary of recovery services.
How long do I have to complain?
Raise it with the bank immediately. There are time limits for referring a complaint to the ombudsman, generally including a period from the firm’s final response, so do not delay.
Should I report it if I lost nothing?
Yes. Reporting attempts helps disrupt operations and is quick to do.
Further Reading
Legal, court and policy reporting appears across News Notes, Local News Point, Weekly Journal and Trends Archive. Firms and organisations seeking coverage use agencies listed via Local PR Services, PR Directory and Press Hubs.
The Bottom Line
Contact your bank immediately using a number you know to be genuine, then report to Action Fraud or Police Scotland and keep the reference.
Do not accept a refusal based only on the fact you authorised the payment, because reimbursement rules have changed. No genuine organisation asks you to move money to a safe account. And verify any change of bank details by phone, on a number you already had.
This article is general information about the law in the United Kingdom and is NOT legal advice. It cannot take account of your circumstances, and acting on general information rather than advice about your own situation can be costly. The law differs between England and Wales, Scotland and Northern Ireland, and several areas covered here are subject to active reform, so provisions, thresholds, fees and time limits change. Figures and time limits cited were believed correct in general terms at the time of writing but must be verified against current official sources. For advice on your own position, consult a solicitor, an accredited adviser, Citizens Advice, or the relevant regulator or ombudsman. Time limits in legal matters are strict and missing one can end a claim permanently, so seek advice early.
