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With fraudsters using more sophisticated tactics every day, victims can suffer significant financial losses. In the wake of such a crime, you might be wondering how to recover your hard-earned savings.
But do banks refund scammed money?
Sadly, there’s no one-size-fits-all answer to this question.
Whether your bank will reimburse you for stolen funds depends on a variety of factors, including its specific policies, the type of scam, the payment method, and how fast you reported the incident.
In this article, we delve into the nuances of bank refunds for scam victims in Australia. Keep reading to explore the different factors that influence the likelihood of getting your money back, the consumer protections available, and what steps to take in the aftermath of a scam.
Equipped with this information, you can take measures to maximise the likelihood of recovering your losses.
Do banks refund scammed money in Australia?
In Australia, banks are not legally required to refund scammed money to victims. While these financial institutions are encouraged to implement a voluntary code of practice for supporting scam victims, they do not have to reimburse you.
Therefore, it’s important to protect yourself and watch out for any warning signs of a scam. Never share sensitive information online and report suspicious activity to your bank as soon as possible.
That said, some banks will refund stolen money if you have fallen victim to a specified scam or they played a role in the transaction. Therefore, always check with your bank to confirm its terms for reimbursem*nt.
Examples of situations where a bank may be liable to refund scammed money include:
- The bank was alerted of a fraudulent account (e.g., through previous complaints) but did not close it before your transaction occurred.
- A suspicious transaction was made at one of their branches and not flagged.
- You called the bank’s priority number to report a security breach and were left on hold for an extended period, during which fraudulent transaction took place.
- The bank failed to block your card and further transactions after you reported the account as compromised.
Consumer groups and other advocates in Australia are pushing for stronger protections for scam victims and urging the government to mandate bank reimbursem*nts. The Australian Competition and Consumer Commission (ACCC) also recommends that banks should refund customers who have lost money to scams.
How long will it take for my bank to refund scammed money?
The time it takes to receive a refund from your bank after falling victim to a scam varies. This duration largely depends on the specific bank’s policies and the method of payment used.
For example, at the time of writing, the following banks state different processing times:
- NAB (National Australia Bank): Card fraud cases tend to be resolved within 4-6 weeks. Digital fraud and scam cases may take longer, often 6-8 weeks.
- Westpac: Fraudulent transaction investigations can take up to 21 working days.
However, best practice is the same for all banks – the sooner you notify them of the scam, the quicker they can investigate the incident and potentially refund your money depending on the policy.
Rapid reporting also helps your bank to halt any more unauthorised transactions, potentially putting a stop to further financial losses.
What obligations do banks have in Australia when it comes to protecting my money?
In Australia, banks aren’t liable for flagging and preventing every scam or fraudulent transaction that targets you.
However, they do have certain obligations to protect your money, including:
- Banks must follow specific protocols for handling chargebacks, unauthorised transactions, and payments made by mistake.
- Banks have responsibilities outlined in the terms and conditions of your account.
As members of the Code of Banking Practice, banks must act fairly and reasonably in their dealings with customers. - Banks may also have duties under common law, contract law, and various consumer protection legislations.
Depending on the circ*mstances, make sure to do your research into the above responsibilities. Armed with an in-depth understanding of these obligations, you can better navigate disputes with your bank over refunding scammed money.
Book a scam investigation now
Lost money to a scam?
Timing is critical, as evidence fades quickly. Moreover, banks and law enforcement are swamped with reports, often dragging out investigations for up to 12 months. By then, crucial leads can run cold.
As a premier fraud investigations firm, IFW Global can bring the truth to light sooner than most banks or law enforcement agencies. We have also been strictly vetted by the NSW Police Force in Australia and the State of Florida in the USA.
Our skilled private investigators will gather and analyse actionable evidence so that you can escalate your case to financial institutions to recover your losses faster.
Don’t wait. Book a consultation to begin your fraud investigation today.
