Romance Fraud and APP Scams: Your Rights
Romance fraud - where criminals build fake online relationships to extract money - is one of the fastest-growing forms of financial crime in the UK. Since October 2024, new mandatory reimbursement rules mean most victims have a legal right to get their money back from their bank.
- Romance fraud is a form of Authorised Push Payment (APP) fraud - victims are tricked into authorising a bank transfer to a criminal.
- Since October 2024, PSR mandatory reimbursement rules require banks to reimburse most APP fraud victims within 5 business days.
- Maximum reimbursement is 85,000 GBP per claim. A voluntary excess of up to 100 GBP may apply.
- Cryptocurrency and gift card payments are not covered by the PSR rules - this is why criminals prefer these payment methods.
How Romance Fraud Works
Criminals create fake profiles on dating apps, social media or gaming platforms presenting as attractive individuals based abroad. Over weeks or months they build emotional connections before introducing financial requests - medical emergencies, business opportunities, travel costs. Money is typically requested via bank transfer, cryptocurrency or gift cards.
The PSR Mandatory Reimbursement Rules
In October 2024, the Payment Systems Regulator introduced mandatory reimbursement for APP fraud via Faster Payments. Key provisions: sending banks must reimburse in most cases within 5 business days; receiving banks share 50% of costs; maximum reimbursement is 85,000 GBP; a voluntary excess of up to 100 GBP may apply.
When Banks Can Refuse
Banks can decline if they can demonstrate gross negligence - a high threshold. Vulnerability, including emotional manipulation from romance fraud, must be taken into account. Banks cannot refuse simply because the victim authorised the payment.
How to Report
Contact your bank immediately and request a payment recall. Report to Action Fraud at actionfraud.police.uk or 0300 123 2040. Report fake profiles to the platform. If your bank rejects your claim, escalate to the Financial Ombudsman Service at fos.org.uk - free to use and binding on firms.
Frequently Asked Questions
Do the reimbursement rules cover cryptocurrency payments?
No. The PSR rules apply to Faster Payments (bank transfers) only. Cryptocurrency and gift card payments are not covered, which is why criminals specifically request these payment methods.
What is the maximum I can claim back?
The maximum under the PSR mandatory scheme is 85,000 GBP per claim. A voluntary excess of up to 100 GBP may be applied. Losses above 85,000 GBP may require a civil claim.
What if my bank says I authorised the payment?
Authorising a payment under deception is the definition of APP fraud. If your bank refuses, escalate to the Financial Ombudsman Service at fos.org.uk. The FOS decision is binding on the firm.
How can I check if someone I met online is genuine?
Reverse image search profile photos, never send money to someone not met in person, and be cautious of anyone who quickly asks to move off the dating platform. Check the FCA ScamSmart tool at fca.org.uk/scamsmart.
