Dispute resolution for fraud disputes

Fraud is something that can happen to anyone. As a stressful and often expensive situation, being targeted by scammers can be distressing no matter how well-prepared and cautious you thought you were. Identity theft is one of the most common frauds everyday people encounter, and it costs victims billions every year – with the number only rising as digital identity theft becomes more and more sophisticated.

If you’ve been the target of fraud, seeking legal advice and guidance is the best way to recover lost funds. Here, we explain how to get compensation if you or someone you know is a victim of fraudulent financial activity.

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Find out more about the common types of fraud experienced by individuals.

Find out what steps to take if you believe you’ve been a victim of fraud.

Find out how seeking legal advice can increase your chances of receiving compensation.

We answer frequently asked questions on dealing with fraud disputes.

Different types of fraud

Fraudsters are more common than ever before – and while plenty of fraud cases try to get money out of businesses, there are scammers out there that are willing to target individual people. Here are some of the types of fraud you should be looking out for:

Identity theft

The most commonly known type of fraud occurs when someone uses your personal details to access accounts, apply for financial services, and more. Often identity theft is achieved through stealing information online, using malware, or even stealing bills and financial letters from bins.

Facility takeover

This type of fraud is where scammers access a financial account you own, such as your bank or credit card. Once they have access to your account, they are then able to effectively ‘takeover’ and spend your money in the same way you would. Banks and financial services have dedicated fraud teams to combat this type of fraud specifically.

Mandate fraud

For individuals that use standing orders and direct debits, mandate fraud is a serious issue. Fraudsters may contact you to say there’s an issue with your direct debit for a specific account or service. This is to redirect your payment to themselves. This could be done via text, over the phone or through a letter in some cases.

Push payment fraud

This type of fraud usually involves convincing an individual to transfer over money quickly for an urgent purchase – often, these scammers pretend to be solicitors, estate agents and even children’s schools. The idea is that they trick you into thinking they are a trustworthy institution.

Steps to take

If you believe you have been a victim of fraud, there’s no need to worry. While no one likes being scammed, systems and processes are in place to ensure you aren’t left out of pocket because of fraudsters. Here are the steps you should take if you think you have a fraud problem:

Reporting the incident

If you’ve been a victim of fraud, the first step is reporting the incident. You should report directly to Action Fraud at www.actionfraud.police.uk, in addition to letting your bank or financial service know if the scam has involved someone accessing your accounts. If an investigation is opened, you’ll then need to provide evidence and co-operate with authorities.

Seeking legal advice

If you’d like to seek compensation or find out more about what you can legally do about fraud, contacting an expert legal service is a next step. A legal advisor will be able to tell you what you can and can’t do in terms of seeking compensation and ensuring your future safety from fraud.

Compensation claims

Claiming compensation may vary depending on the fraud committed. You may be reimbursed through your insurance, through your bank, or through a compensation scheme. The best place to start is to speak to a legal professional to ensure you’re going down the correct route when seeking reimbursement.

How can getting legal advice help you in obtaining compensation?

Seeking compensation on your own can be a challenge for many. That’s where a law firm like Giambrone can help. By making the compensation process easier, our financial litigation team can ensure you will receive the compensation you deserve, and we will also prevent fraud from occurring in the future. With proper legal advice, you’re far more likely to access the compensation you’re looking for. With extensive experience in fraud cases, our expert team is well-placed to help people get their money back following financial fraud.

If you would like to know more about how you can obtain compensation for financial fraud, please contact us here. You can find out more about our dispute resolution services here.

Frequently asked questions

What is a purchase dispute?

A purchase dispute is where you can dispute a fraudulent payment made with your credit or debit card by contacting the bank or financial company directly.

Can banks reverse a transaction?

Generally, banks are able to reverse payments in cases where those payments are either made in error or can be proved to be fraudulent.

What happens when a bank gets a fraud claim?

The first thing the fraud team at a bank will do is establish whether they are dealing with a genuine fraud case. If they confirm your report, they will reimburse you where possible.

How do you spot a financial scam?

If you’re contacted out of the blue, find that the person you’re talking to is very pushy, or they ask for information you are not comfortable providing, then it is possible that there may be an attempt to scam you. If you’re concerned, the first step is to contact the financial institution directly. Use a different mobile or landline to validate whether the person that contacted was actually representing a legitimate organisation.

What happens when you dispute a charge with your bank?

As with all fraud activity, the bank will confirm if this activity has occurred before returning the payment to you.

How long does it take for a bank to refund stolen money?

Banks will return stolen money as soon as possible, in most cases.

Can you sue a bank for not refunding your money?

If the bank rejects your claim following suspected fraudulent activity, legal advice should be sought to establish the basis of the bank's rejection of the claim based on the suspected fraud

How long does a credit card dispute take?

There’s no specific time frame for credit card disputes, however, in most cases, the organisation will act as quickly as possible to resolve the dispute and return your money.

What level of compensation can you obtain for push payment fraud?

Compensation for push payment may depend on whether there has been a criminal conviction related to the cybercrime, and if money is available to be returned to you. Giambrone & Partner's banking and financial fraud team will be able to advise to you. 

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