Do Banks Refund Scammed Money? What You Need to Know

The question “do banks refund scammed money” is more relevant now than ever, as online scams and fraudulent activities target countless consumers each year. The answer isn't simple—it depends on the specifics of your case, the type of scam, how you paid, and how quickly you notify your bank.

When Banks Are Required to Refund Your Money

Banks are generally required to refund you if you did NOT authorize the transaction. This includes situations where your account or card details were stolen and used without your knowledge or consent, which the law classifies as “unauthorized transactions.” In those cases:

• Report unauthorized charges to your bank promptly, typically within 60 days of the statement date showing the fraudulent transaction.

• The bank will investigate the claim. If it determines you did not approve the transaction, they will usually reimburse you for the loss1.

Situations Where Refunds Are Not Guaranteed

If you were tricked into authorizing a payment to a scammer yourself—for example, through a wire transfer, payment app, or by sending cash—banks are often not legally obligated to refund:

• Wire transfers are usually final, and banks rarely recover or reverse completed transfers, even if you were scammed. The bottom-line, unless you're able to get a wire-transfer reversed, banks are not required to reimburse customers for wire-transfer fraud.

• Payments via apps like Zelle or Cash App are treated similarly to cash, meaning recoveries are uncommon unless the app itself provides specific protections.

• Credit card payments offer stronger consumer protection via chargebacks. If you used a credit card and report the incident quickly, you have a good shot at a refund.

• Cash and cryptocurrency are almost never recoverable by the bank if you were deceived into sending them1.

What If Your Bank Account Is Hacked?

If someone hacks your account and makes unauthorized transfers, banks will usually refund your money—but prompt reporting is critical. Waiting too long or failing to monitor your accounts can increase your liability and reduce your chances of reimbursement1.

What Should You Do If Scammed?

• Stop contact with the scammer.

• Report the scam to your bank immediately, even if you aren't sure you'll get a refund.

• Change passwords to any compromised accounts.

• Notify credit bureaus to monitor for identity theft.

• Contact local police—having a police report may help your case.

• Report the fraud to the FTC and other relevant authorities.

How Fast Do Banks Refund Scammed Money?

• Credit cards: Refunds after investigation, typically within 90 days. Some issue provisional credits while investigating.

• Debit cards: Banks must investigate within 10 business days; may issue temporary credit if it's not resolved quickly.

• Wire transfers and payment apps: Much less likely to be refunded, but always report immediately to maximize recovery chance1.

How to Protect Yourself

• Never share login credentials or authentication codes.

• Don’t trust unsolicited calls, emails, or messages about your bank account.

• Regularly monitor your account activity for suspicious transactions.

• Only use secure, official communication channels when contacting your bank.

• Enable two-factor authentication (2FA) for your accounts.

The Bottom Line

Banks do refund scammed money in some circumstances, but not always—especially if you authorized the transaction, even under deception. The best defense is prevention: stay alert for scams, act quickly if you suspect fraud, and use payment methods with strong consumer protection whenever possible1.