Cash & Cheque Fraud
Cash and cheque payments have fewer automatic protections than bank transfers or card payments. But if your bank failed in its duty of care — for example, by not intervening when you withdrew large amounts of cash under suspicious circumstances — there may still be grounds for a claim.
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Protection coverage
Maximum recovery: Varies — depends on circumstances
Time limit: 6 years (FOS / common law)
Key points
PSR mandatory reimbursement does NOT cover cash or cheque payments
Banks should follow the Banking Protocol for suspicious cash withdrawals
FCA Consumer Duty requires banks to prevent foreseeable harm
Impersonation scams involving cash withdrawals may have grounds for claims
Each case needs individual assessment
Cash and cheque payments are not covered by PSR mandatory reimbursement or card chargeback schemes. However, this doesn’t mean you have no options.
If you withdrew cash from your bank and were being manipulated by a fraudster — particularly in impersonation scams where someone convinced you to withdraw cash for a ‘safe collection’ — your bank may still bear responsibility. Banks are expected to follow the Banking Protocol, which means they should question unusual cash withdrawals and involve the police if they suspect a customer is being scammed.
The FCA Consumer Duty also requires banks to prevent foreseeable harm. If a branch allowed a large, unusual cash withdrawal without adequate intervention, this may be a breach.
Common Questions
Cash & Cheque Fraud — your questions answered
Potentially, yes. This is a common impersonation scam. Banks are expected to follow the Banking Protocol, which means questioning unusual cash withdrawals and involving police if they suspect fraud. If your bank failed to intervene, this could form the basis of a complaint.
Report it to your bank immediately. While PSR rules don’t apply, your bank has obligations under the Payment Services Regulations regarding cheque fraud. The Financial Ombudsman can also review how your bank handled the situation.
We operate on a no-win, no-fee basis under a Damages-Based Agreement. If your claim is unsuccessful, you pay nothing. If we recover funds for you, our fee is a percentage of the amount recovered. The exact percentage is clearly explained before you sign anything, as required by SRA regulations.
The PSR mandatory reimbursement scheme applies to payments made within 13 months. For older cases, the Financial Ombudsman can consider complaints up to 6 years from the event, or 3 years from when you became aware. We can assess your eligibility during the free initial review.
Lost money via cash or cheque payment?
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