Banks’ responsibility for scams | Consumer Financial Protection Bureau (2024)

FAQs

Are banks responsible if you get scammed? ›

The short answer is: it depends. While getting a refund after losing money to scammers is possible, the outcome depends on factors like bank policy, the type of scam, the amount lost, and how quickly the scam was reported. According to US federal law, banks must reimburse you for unauthorized transactions.

Our resources can help you prevent, recognize, and report scams and fraud.

Notify your bank immediately. For more details, give a missed call on 14440. If someone has fraudulently withdrawn money from your bank account, inform your bank immediately. When you notify the bank, remember to take acknowledgement from your bank.

The FBI works with partners to investigate mortgage and financial institution fraud cases. The FBI participates in task forces that share intelligence, de-conflict cases, and create joint investigations.

Most bank policies have protections for consumers who experience card fraud or unauthorized electronic transactions. For example, if someone uses your debit card without your consent and you file a dispute, your bank will likely refund the unauthorized transaction.

If you've been scammed, your bank may refund the money stolen from your account. It depends on the amount, how long it took to report the fraud, and how the money was stolen. While that may not be comforting, you do have some protections, including: The Fair Credit Billing Act (FCBA).

Consistent with applicable law, we securely share complaints with other state and federal agencies to, among other things, facilitate: supervision activities, enforcement activities, and. monitor the market for consumer financial products and services.

The CFPB has primary authority to enforce federal consumer financial laws for banks and other depository institutions with total assets of more than $10 billion, and their affiliates, which collectively hold more than 80 percent of the banking industry's assets.

We have supervisory authority over banks, thrifts, and credit unions with assets over $10 billion, as well as their affiliates. The depository institutions and affiliates included in the list below are currently under CFPB's jurisdiction and subject to CFPB supervision and examination.

Generally not (and scammers tend to use non-reversible transactions, anyway). It's the same if you took out a bunch of cash, then handed it to someone outside. As soon as you authorise the payment, it is no longer their problem.

How to recover from being scammed? ›

If the bank is confident that fraud has occurred and feel the case is substantial enough to warrant it, the bank may notify law enforcement agencies such as the FBI. Of course, the decision on whether or not to open an investigation is up to the law enforcement agency involved.

If a bank fails to safeguard against such activities, it may be held liable for the losses. However, banks have historically refused to pay for certain kinds of fraud, especially in cases in which consumers authorized payments, even if those consumers were deceived.

If you or someone you care about is the victim of a fraud, scam or financial exploitation, you can report the fraud or scam to the Federal Trade Commission (FTC). Because all scams are different, you might have to reach out to a number of other local, state, and federal agencies depending on your situation.

Your financial institution

Contact your bank or credit union immediately if you've sent money to a scammer. They may be able to close your account or stop a transaction. Make sure you call them using their official phone number, not the one in the scam message.

Contact Your Bank

If you believe somebody made an unauthorized transaction using your bank account information, request that the transaction be reversed and your money be returned.

Contact the financial institutions, credit card issuers, or companies that are involved. Tell them about the scam. You might need to change your account numbers and your PINs, and get new debit and credit cards.

With Chase's Zero Liability Protection you won't be held responsible for unauthorized charges made with your card or account information.

The bank's investigation must be reasonable.

Bank officials can't legally ignore you. If the bank fails to conduct a reasonable investigation or comes to a completely unreasonable conclusion with the evidence they have, you may have a claim against the bank for violations of the Electronic Funds Transfers Act (EFTA).