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Fraud victim recovers £20,000 after BBC intervention
A UK woman, identified only as Sarah, had £20,000 stolen in an elaborate investment scam that went undetected for 17 months. After initially being told by Lloyds Bank that she was only eligible for a £1,000 refund due to a 13-month reporting deadline, she received full reimbursement within a day of BBC Radio 4's Money Box raising the case.
Controversial 13-month rule faces calls for reform
National Trading Standards has urged an urgent review of the 13-month time limit for reporting push payment scams-where victims are tricked into transferring money themselves. The rule, part of the Mandatory Reimbursement Requirement introduced by the Payment Systems Regulator in October 2024, requires victims to report fraud within 13 months of their last payment to qualify for refunds of up to £85,000.
Louise Baxter, head of the Scams Team at National Trading Standards, argues the rule fails to protect all victims. "Investment fraud can continue for years before victims realize they've been scammed," she said. "The time limit should start from when a person discovers the fraud, not from the last payment."
How the scam unfolded
Sarah, who shared her story anonymously, believed she was investing in ethical social housing. She conducted due diligence, verifying the company's registration with Companies House, checking Law Society credentials, and reviewing Trustpilot feedback before withdrawing £20,000 from her pension in October 2024.
She only realized she had been defrauded in March 2026-four months after the 13-month deadline. Lloyds Bank initially refused to refund the full amount, citing the rule, but reversed its decision after the BBC intervened.
"It really floored me. I had no idea about the 13-month rule. If it's impossible to spot these scams, how are ordinary people supposed to know?"
Sarah, fraud victim
Banks defend the rule, but alternatives exist
UK Finance, representing banks, stated that few cases fall outside the 13-month window and encouraged victims to escalate disputes to the Financial Ombudsman Service (FOS), which has no time limit and can order reimbursements up to £455,000.
The Payment Systems Regulator acknowledged that investment scams can take time to detect but maintained that the 13-month claim window is clear. "We expect firms to support customers and consider individual circumstances," a spokesperson said.
What victims can do
- Report scams to your bank immediately-even if you're unsure.
- If dissatisfied with your bank's response, complain to the Financial Ombudsman Service.
- Verify investment opportunities through multiple official sources, including Companies House and FCA registers.
Lloyds Bank's response
A spokesperson expressed sympathy for Sarah but emphasized the importance of reporting scams promptly. "Investing should only be done with legitimate, trusted companies. If you suspect fraud, contact your bank immediately."
Sarah described her relief at the full refund: "I'm over the moon. It's incredible how quickly things changed-from losing my retirement savings to getting it all back."
