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Bank Negligence Compensation:

Claim for Bank Transfer Scams

Quick Guide

  • Banks have a duty of care to protect customers from fraud by having procedures and systems to warn, detect and prevent scams from happening.
  • They need to ensure they are preventing money-laundering and the financing of terrorism.
  • Where banks have been negligent or failed in their duty to protect you and your money, TLS Lawyers can help you make a no-win, no-fee compensation claim.

Have you lost money due to bank negligence?

You may be eligible for compensation if your bank failed in its duty to safeguard you.

What is bank negligence?

As part of the regulation of UK banks, they have obligations to customers to have in place procedures, systems, and policies to detect and prevent financial fraud, including:

  • Monitoring the accounts of customers, particularly those who may be vulnerable to fraud or scams.
  • Providing effective warnings to customers via online and mobile banking to make them aware of scam tactics.
  • Detecting suspicious activity on customer accounts and delaying or stopping transactions until they have been investigated.
  • Using industry intelligence to prevent fraudsters from creating bank accounts for the purpose of scams, money laundering and financing terrorism.

However, in a growing number of cases, banks have been found to have failed in their responsibilities to protect consumers resulting in scammers gaining access to significant amounts of victims’ money.

Meet Our Team

Kate Hobbs

Legal Director

Frequently asked questions

Authorised Push Payment (APP) fraud, or bank transfer fraud, is a type of cybercrime where scammers use tactics such as impersonation, interception, and social engineering techniques including grooming their victims to convince them to transfer money from their own bank accounts to those of the fraudsters.

In some cases of what is known as ‘two-step bank fraud’, victims are instructed to move their own money first from one bank to another, and then again into ‘a new account’ set up in their name – which is in fact in the control of the scammer. Usually, the scammers move the money straight onto another, difficult-to-track and often overseas account, which proves almost impossible to recover.

Banks are – or should be – aware of these types of scams and should have robust systems and processes in place to detect or deter the scams as they occur, including:

  • Providing scam warnings throughout the transaction process.
  • Halting or pausing the transaction if the activity is suspicious.
  • Contact the customer directly if the activity is out of the ordinary.

Where the bank has not provided sufficient safeguards resulting in the customer losing money to a scam, there is the option to take the complaint to the Financial Ombudsman Service (FOS). The FOS is an independent, Government endorsed body responsible for investigating and adjudicating disputes between financial institutions and consumers, both business and individual.

Typical APP scams include:

  • Romance scams – where the fraudster poses as a potential suitor in order to get close to the victim and convince them to send personal details and money.
  • Cryptocurrency scams – fraudsters promise financial ‘quick wins’ to persuade would-be investors to transfer money to build fake cryptocurrency portfolios.
  • Impersonation scams – where the scammer claims to be calling from a trusted organisation or company, such as the victim’s bank or building society, or uses number spoofing to impersonate a family member or friend.
  • Investment scams – as people try to earn more money for later life, or pension, scammers use this information to target would-be investors with bogus investment schemes.

If you suspect you have been the victim of an APP scam, then urgently report this to the bank, the police, and Action Fraud, the UK’s national reporting centre for fraud and cybercrime. If you have lost money, this may lead to a criminal investigation by the police.

The TLW Solicitors APP Fraud team deal with a wide range of claims and banks.

Common UK banks include:

  • HSBC
  • NatWest
  • Santander
  • Barclays
  • Halifax
  • Revolut

Even if your bank is not on this list, get in touch for a no-obligation conversation about your case.

Our dedicated Professional Negligence team has many years of experience dealing with FOS and successfully claiming compensation for our clients, even where they have previously taken a compensation case to the FOS and been unsuccessful.

We understand the time limits to be followed, the information needed and the claims and appeals processes involved. The team will also deal with any complex legal arguments and defences that the bank may raise.

The combination of our experienced team and digital case management systems means that we can proactively pursue your claim and aim to get the best possible results for our clients.

The specialist fraud team at TLS Lawyers are helping many clients recover refunds on a no-win, no-fee basis. If you have a claim, we will deal with your claim from start to finish, whilst keeping you up to date as the case progresses.

The steps in the claims process are:

  1. Submit your claim with us by completing either the online claim form, request a callback, telephone our office, or email us using the contact details provided.
  2. A member of the fraud team will discuss your claim with you and advise whether you may have a claim that we can deal with.  If we can assist you, we will send you our welcome pack which contains useful information on what to expect throughout your claim as well as details of what information we’ll need from you.
  3. You will be assigned a case handler. If following an initial assessment of your case we think you have a claim, we will be in touch to go through the next steps. If we don’t think you have a claim, we will provide our reasons why so that you may consider other options.
  4. Your case handler will ask for and review any additional documentation needed to progress your claim, this will include contacting the banks involved on your behalf. You will be kept up to date by email and phone calls if required.
  5. Depending on the circumstances of your case and due to a wide range of factors outside of our control, making a refund claim can take several months to complete – as your case progresses, we will try to give you as much information as possible about the likely timescales. We will continue to update you on your claim, and you will be able to contact your dedicated case handler if there are any issues or concerns.
  6. We work on a ‘no win, no fee’ basis, which means that if your claim is unsuccessful, there will be no charge for the work we do.

We offer a free, no-obligation assessment of your case and will make a decision on whether or not to pursue your claim. If we take on your case, we operate on a ‘no win, no fee’ basis, meaning you do not pay us anything if your refund claim is unsuccessful.

TSL Lawyers pledge to:

  • Always fight your corner.
  • Explain anything you don't understand.
  • Provide full transparency on our charges.
  • Never ask for any upfront payment.
  • Recover the best compensation we can.
  • Keep your personal information safe.
  • Respond quickly to any queries.
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