Purchase fraud

Victim of purchase fraud?
You may be entitled to a refund.

Purchase scams occur when you pay for goods or services that never arrive, from sellers who turn out to be fraudulent. If you paid by bank transfer and your bank failed to protect you, you may be able to claim a refund.

Check if you can claim →

Free, no-obligation eligibility check. Takes 5 minutes.

SRA regulated
SSL encrypted
No win, no fee

Highest

Volume of any APP fraud type

~£2,300

Average loss per case (all APP fraud)

5 days

Bank must respond under PSR rules

How PURCHASE FRAUD Works

Recognising purchase fraud

Purchase fraud is the highest-volume type of APP fraud in the UK, though individual losses tend to be lower than investment or romance scams. Victims pay for items — often found on social media marketplaces, fake websites, or online classified ads — that are never delivered.

Common examples include fake sellers on Facebook Marketplace, Instagram, or other social platforms advertising electronics, vehicles, event tickets, holiday rentals, or designer goods at attractive prices. The fraudster typically insists on payment by bank transfer (rather than using the platform’s payment protection) and then disappears after receiving the money.

Common warning signs

A price that seems too good to be true
The seller insists on bank transfer rather than the platform’s payment system
Limited or no seller history, reviews, or verification
Pressure to pay quickly before someone else ‘buys it’
Communication moves off the platform to WhatsApp or direct messages
The seller cannot provide a verifiable business address or returns policy

Your Legal Rights

Why your bank may owe you a refund

When you fall victim to purchase fraud, your bank has specific legal obligations. Here are the grounds we use to pursue your claim:

PSR mandatory reimbursement

Since October 2024, banks must reimburse eligible APP fraud victims up to £85,000 for payments via Faster Payments and CHAPS within 5 business days.

Failure to warn about purchase fraud risks

Banks should apply Confirmation of Payee checks and issue appropriate fraud warnings when customers make payments to new recipients, particularly for amounts inconsistent with their usual spending patterns.

FCA Consumer Duty

Banks must act in customers' best interests and prevent foreseeable harm. Failure to detect purchase fraud may breach this duty.

Financial Ombudsman escalation

If your bank refuses, the FOS can independently review and award up to £430,000. We handle the entire escalation process.

How It Works

How we recover your money

1

Tell us what happened

Complete our short form with details of the purchase fraud and how much you lost.

2

We assess your claim

Our legal team reviews your case and identifies the strongest regulatory arguments for your specific situation.

3

We pursue your bank

We submit a formal complaint citing the specific obligations your bank has breached, and chase every deadline.

4

Resolution

If your claim succeeds, you receive your refund minus our agreed fee. If we don’t recover anything, you pay nothing.

Common Questions

Purchase Fraud claim FAQ

We have a minimum claim value of £1,500 to ensure the claim is commercially viable. If your loss is below this threshold, you can still pursue a claim directly with your bank or through the Financial Ombudsman at no cost. For losses above £1,500, our professional representation can significantly strengthen your case.

What matters for your claim is how you paid — specifically, whether the money left your bank account via Faster Payments or CHAPS. Even if you found the seller on a social media platform, if you made a bank transfer, the PSR mandatory reimbursement rules may apply to your case.

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.

Fallen victim to purchase fraud?

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