Halifax Bank Transfer Scam Compensation:
Claim Refunds for Authorised Push Payment (APP) Fraud

Bank transfer scams come in a range of guises and, although older people and less ‘tech savvy’ individuals may be more vulnerable to fraud, scammers are not picky about whom they target. Therefore, it is important to understand the different types of APP scams and their specific warning signs.

Typical APP fraud scams include:

• Romance scams – where using dating apps and social media messaging, the fraudster poses as a potential suitor in order to get close to the victim and convince them to send personal details and money.
• Cryptocurrency scams – fraudsters promise financial ‘quick wins’ to persuade would-be investors to transfer money to build fake cryptocurrency portfolios.
• Impersonation scams – where the scammer claims to be calling from a trusted organisation or company, such as the victim’s bank or building society, or uses number spoofing to impersonate a family member or friend.
• Investment scams – as people try to earn more money for later life, or to increase their pension pot, scammers target would be investors with bogus investment schemes.

In each type of APP scam, the victim is misled into believing that the reason for the payment is legitimate and is persuaded to willingly transfer funds from their own account to the fraudsters.

Banks in the UK, including Halifax, are responsible for implementing stringent measures to prevent and detect financial crimes, such as Authorised Push Payment fraud and money laundering.

These measures include:

• Monitoring accounts for suspicious activity.
• Stopping unusual transactions.
• Using their industry knowledge and expertise to recognise common and emerging scam tactics.
• Warning customers about scam red flags throughout the transaction process – particularly the vulnerable, such as the elderly.

If you suspect that you have been a victim of APP fraud related to your Halifax account, it is important to report the incident to the bank, police, and Action Fraud, the UK’s national reporting centre for fraud and cybercrime.

Halifax will then investigate the report and depending on the circumstances of the scam, may provide a refund. If a refund is denied and you believe that the Halifax should have done more to prevent the fraud, you can file a claim with the Financial Ombudsman Service, an independent Government-backed body responsible for investigating disputes between consumers and financial institutions. Recent FOS investigations have revealed that some UK banks, including Halifax, have not adequately fulfilled their obligations to customers.

The FOS regularly publishes records of investigation outcomes on its website, and there have been an increasing number of decisions being made in favour of consumers due to banks not carrying out their responsibilities to prevent fraud sufficiently.

In one such decision, an 82 year-old Halifax customer who had been misled by a fraudulent investment firm, transferred a total of £52,000 to a fraudster’s account through a bank transfer after being convinced to invest with a fake cryptocurrency company called WiseCoin. Halifax initially refused to compensate the customer, arguing that the bank transfer was authorised, but later agreed to reimburse the customer’s losses following a Financial Ombudsman Service investigation.

Obtaining legal advice from an experienced, expert solicitor is crucial when making a claim to the FOS for compensation.

Our specialised APP fraud team can assist you in making a complaint to the FOS; we understand the key processes and tight deadlines involved in making a claim and will keep you informed throughout the process. Our advanced case management system allows us to ensure the swift progress of your case.

The specialist fraud team at TLW Solicitors are helping many clients recover refunds on a no-win, no-fee basis. If you have a claim, we will deal with your claim from start to finish, whilst keeping you up to date as the case progresses.

The steps in the claims process are:

1. Submit your claim with us by completing either the online claim form, request a callback, telephone our office, or email us using the contact details provided.
2. A member of the fraud team will discuss your claim with you and advise whether you may have a claim that we can deal with.  If we can assist you, we will send you our welcome pack which contains useful information on what to expect throughout your claim as well as details of what information we’ll need from you.
3. You will be assigned a case handler. If following an initial assessment of your case we think you have a claim, we will be in touch to go through the next steps. If we don’t think you have a claim, we will provide our reasons why so that you may consider other options.
4. Your case handler will ask for and review any additional documentation needed to progress your claim, this will include contacting the banks involved on your behalf. You will be kept up to date by email and phone calls if required.
5. Depending on the circumstances of your case and due to a wide range of factors outside of our control, making a refund claim can take several months to complete – as your case progresses, we will try to give you as much information as possible about the likely timescales. We will continue to update you on your claim, and you will be able to contact your dedicated case handler if there are any issues or concerns.
6. We work on a ‘no win, no fee’ basis, which means that if your claim is unsuccessful, there will be no charge for the work we do.

Lawyers from TLW Solicitors have been highlighted in both BBC’s ‘Northern Justice’ series and their weekday morning talk show ‘Morning Live’.

The ‘Northern Justice’ episodes portray how TLW Solicitors helped scam victims recover significant compensation. Further information regarding the BBC series and how we successfully supported our clients can be found here.