Across the UK, law firms are actively onboarding clients who’ve lost money to investment scams, authorised push payment (APP) fraud, and mis-sold products. This surge follows regulatory changes and fresh case law that shape who pays, how fast, and which forum is best for redress.
Why 2025 is different
New reimbursement rules for APP fraud took effect on 7 October 2024 and were consolidated in 2025; banks and other payment firms now share liability for many Faster Payments and CHAPS scam losses, subject to policy limits and exceptions. This has catalysed legal outreach and claims handling.
First steps after suspected financial fraud
Report and preserve evidence
Report fraud online to Action Fraud (the UK’s national reporting centre) or by calling 0300 123 2040. Keep screenshots, statements, and message logs. If a cyberattack is live, call their hotline immediately.
Notify your bank promptly
Payment-service complaints must usually get a firm response within 15 days; other financial complaints have an 8-week deadline before you can escalate.
Escalate to the Financial Ombudsman Service (FOS)
If the business issues a final response (or 8 weeks pass with no resolution), you typically have 6 months to take the case to FOS; broader limits include 6 years from the event or 3 years from when you knew you had cause to complain.
Quick wins you can try before instructing a lawyer
Section 75 and chargeback routes
For qualifying credit-card purchases (£100–£30,000), Section 75 lets you claim against the card issuer for breach or misrepresentation by the supplier. Debit cards and some credit-card cases may use chargeback (a card-scheme remedy with time limits).
Check FSCS protection
If an FCA/PRA-authorised firm fails, the FSCS may compensate (commonly up to £85,000 per person per firm), though not all products or scenarios are covered.
What lawyers are focusing on in 2025
APP fraud claims and reimbursements
With mandatory reimbursement bedding in, firms are testing liability splits and edge cases under the PSR’s policy framework, while banks refine claim triage. UK Finance’s 2025 data shows shifting fraud patterns despite progress on APP cases.
Motor-finance and mass-redress trends
Beyond fraud, consumer litigation is expanding in adjacent areas (for example, motor-finance commissions), prompting firms to intake large cohorts of clients.
Limits of suing your bank for APP fraud
The Supreme Court in Philipp v Barclays clarified that banks don’t owe a duty to block a payment a customer has personally authorised, narrowing the “Quincecare” avenue—though post-fraud recovery efforts may still be arguable.
Choosing a British lawyer (and avoiding bad actors)
Verify regulation and discipline history
Use the SRA’s Solicitors Register (England & Wales) and the Law Society’s “Find a Solicitor” to confirm authorisation and check for decisions.
Distinguish solicitors from claims-management companies (CMCs)
CMCs are regulated by the FCA; you can verify on the Financial Services Register. If anyone contacts you out of the blue, check the FCA Warning List—clone-firm scams are common.
Funding models: what “no win, no fee” really means
Read the SRA’s consumer guidance on Conditional Fee Agreements (CFAs) and Damages-Based Agreements (DBAs). DBAs must comply with the 2013 Regulations; marketing claims around “no win, no fee” have drawn regulator warnings.
Building a strong case file
Evidence checklist
Collect transfer confirmations, card statements, chats/emails with the fraudster, KYC screenshots from exchanges or platforms, bank complaint letters, Action Fraud reference numbers, and any call logs with your bank’s fraud team. Then prepare a one-page timeline of events.
Legal time limits to watch
Court claims in simple contract and many tort cases often carry a 6-year limitation period; deliberate concealment or fraud can postpone the clock under Section 32. Don’t rely on this without legal advice—act early.
Your options: Ombudsman, FSCS, or court?
1) Financial Ombudsman Service (free, consumer-friendly)
Use when you have a regulated firm and a viable complaint; comply with the 6-month referral clock after the final response.
2) FSCS compensation (when firms fail)
Viable if an authorised firm has gone bust and the product/activity is in scope, usually up to £85,000 per person, per firm.
3) Litigation (for complex or high-value loss)
Consider where the defendant is solvent, the facts are disputed, or non-regulated actors are involved (e.g., recovery, tracing, third-party liability). Weigh prospects, funding, ATE insurance, and enforcement risk with your solicitor.
How to avoid becoming a client in the first place
Use the FCA’s ScamSmart tools
Check firms and investments; beware of clone-firm tactics and unsolicited contacts. Always use the contact details on the FCA Register.
Harden payment decisions
Know the APP-fraud patterns and don’t bypass warnings. The PSR, FCA, and UK Finance publish guidance that can help you avoid “urgent” transfers to impostors.
Practical timeline for a typical UK fraud complaint
Week 0–1: Report, secure, and notify
Report to Action Fraud; alert your bank; freeze or monitor accounts; assemble documents.
Week 2–8: Firm investigates
Payment-service complaints should see a response within 15 days; otherwise expect up to 8 weeks for most cases.
Month 2–7: Escalate if needed
If you’re unhappy with the outcome (or time’s up), refer to FOS within 6 months of the final response. Consider legal advice in parallel, keeping court limitation periods in mind.
FAQs
Will the new APP rules guarantee my money back?
No—reimbursement has scope limits, thresholds, and exceptions; it generally applies to Faster Payments (and CHAPS per the 2025 consolidation) made on or after 7 October 2024. Your provider will assess eligibility.
Can I sue my bank for sending money I authorised?
After Philipp v Barclays, that path is narrow: banks must execute clear customer instructions, though post-fraud recall steps may still be scrutinised.
Is FSCS the right route if I fell for an online scam?
FSCS helps when authorised firms fail or there’s covered bad advice; it does not compensate for every scam scenario. Check eligibility carefully.
