If you’ve lost your money to a crypto scam you might be wondering if it’s possible to recover it from your bank without the help of a solicitor.
The short answer is that you can pursue a claim on your own without using a legal professional and I’ve detailed the steps you need to take further down in this article.
However, it’s important to remember that having a legal representative fighting your corner can often improve your chances of a successful outcome.
This is especially true if your claim is complex or if the bank is refusing to cooperate with your request or failing to sufficiently investigate your case.
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Banks Have To Follow A Code
All banks in the UK are required to follow the Contingent Reimbursement Model (CRM) Code. This means that under certain circumstances they’re required to reimburse scam victims.
However, if your bank continues to reject your complaint, or fails to respond within eight weeks, this doesn’t mean it’s the end of the matter.
Under these circumstances you can then escalate your case to the Financial Ombudsman Service (FOS) who will review your case and make a decision without charge.
Of course, all this takes time and effort and some people may not feel confident enough to take on their bank themselves which is why a specialist solicitor can help.
Having a professional on your side means they’ll fight your corner for you and will be well briefed on how to handle any tricky questions posed by the bank or any barriers they may put up against refunding you.
The solicitor can also appeal your case if the bank refuses to issue you with a refund or the FOS rules against you. There may also be further legal avenues to securing a refund that they can pursue on your behalf.
Will The Banks Give Me My Money Back?
There are a wide variety of circumstances under which UK banks may refund your money if you’ve been the victim of a crypto scam.
They include:
- If your bank allowed you to transfer a large amount of money which was far greater than the usual transactions made on your account without sufficient checks. This might include failing to block transactions to platforms potentially linked to fraudulent activity, or failing to provide you with sufficient warnings. Here, it may be possible to argue that your bank failed in their duty of care to you and should therefore pay compensation.
- Authorised Push Payment (APP) fraud. This is where you’re tricked into sending funds to scammers posing as a legitimate firm.
- If the payment was made using a credit or debit card. Here, Section 75 of the Consumer Credit Act applies. If you paid by debit card, you might be able to request a chargeback.
- If your account was hacked and someone made an unauthorised transaction without your permission. Under these circumstances the bank is legally required to refund you unless there is evidence that you acted fraudulently or with gross negligence.
Why Might My Claim Be Denied?
When it comes to crypto scams, the banks may deny you a refund if you carried on with a transaction willingly despite clear scam warnings.
If the scam involved unregulated cryptocurrency exchanges located outside the UK the bank may turn down your claim as this makes it harder for them to claim back the funds.
Using a third-party payment provider to transfer money to crypto scammers could also lead to your claim being denied as the bank would argue that it had no control over the funds.
What You Need To Start A Claim
If you’ve been the victim of a crypto scam (or any other scam for that matter) it’s important to gather all the relevant information and report what’s happened as soon as possible.
Collect screenshots of the conversations you’ve had with the scammer, ie WhatsApp exchanges, together with the transaction details (including wallet addresses and TxIDs) and any emails you may have received from the fraudsters.
You then need to contact your bank in writing and explain that you were the victim of a scam and that you didn’t willingly invest in the fraud.
It’s also important to include any information about any scam warnings your bank did – or didn’t – make as you were sending funds to the scammer’s crypto wallet or fake platform.
You should then request that your case be investigated by the bank and that you should be reimbursed the money you inadvertently sent to the crypto scammers.
The bank will then examine your case and may request further information before issuing you with a decision.
As mentioned, if you’re unhappy with the outcome, you can then escalate your case to the Financial Ombudsman which is free and can be done online.
The FOS will then examine your case and whether your bank followed the correct procedures before making a decision.
If your case is rejected by the FOS a solicitor specialising in no win, no fee crypto scam recovery can help with an appeal.
Final Thoughts
Recovering funds lost to a crypto scam from your bank can be a lengthy and time-consuming process, but it is something you can do on your own.
However, employing the services of a legal professional may increase the chances of a positive outcome.
As many firms in this sector work on a no win, no fee basis, there is no financial risk to pursuing a claim even if it’s ultimately unsuccessful as is sometimes the case.
It’s important to remember that help is out there and a solicitor will support you throughout the process to maximise the chance of a successful outcome.
Many people prefer to use a solicitor as managing the stress of seeing your life-savings lost to a scam while battling against the bank can add significant pressure to your situation.
> If a solicitor is unable to pursue your case, get in touch to discuss alternative courses of action to trace your stolen crypto
