If you have just realised you were scammed, one of the first questions is usually about your bank. Do banks refund scammed money in Australia? Sometimes. If someone took money from your account without your permission, your bank will usually have to refund it. If you were tricked into sending the money yourself, banks usually don’t have to refund it, but there are exceptions, and the rules are changing in 2026 and 2027.
This guide answers the question “do banks refund scammed money?” for Australians: when banks refund scam losses, when they don’t, what you can do to improve your chances, and where to complain if your bank says no.
Do banks refund scammed money? The short answer
It depends on one question: did you authorise the payment?
- You didn’t authorise it (someone accessed your account, card or app and moved money): your bank will usually refund you, as long as you didn’t contribute to the loss, for example by sharing your password or a one-time code.
- You authorised it (a scammer convinced you to make the transfer yourself): banks usually treat this as a payment you approved, so a refund is not automatic. You can still ask, and in some cases the bank may be responsible.
So, do banks refund scammed money? Only in some situations, and the sections below explain which ones.
When your bank usually has to refund you
Unauthorised transactions are covered by the ePayments Code, which most Australian banks follow. If you report quickly and didn’t share your passcodes, you are generally not liable for money taken without your permission. For card payments, you may also be able to dispute the charge through your bank (a chargeback), especially if you report it soon after it happened.
Your bank may also be responsible if it made a mistake of its own. The Financial Rights Legal Centre gives examples: the bank already had warnings that the receiving account was fraudulent, it let a clearly suspicious transaction go through in a branch, or it didn’t block your card after you reported it compromised.
When banks usually don’t refund scammed money
Most scam losses in Australia fall into this group. In investment, romance and job scams, the victim usually makes the transfers themselves, because the scammer has built trust over weeks or months. Banks generally see these as authorised payments. Money sent as cryptocurrency, gift cards or cash is also very hard to get back through a bank, because once it leaves your account the bank has little control over it.
Can the receiving bank be responsible?
Yes, in some cases. From 12 March 2026, the Australian Financial Complaints Authority (AFCA) can consider complaints against the bank that received the scam money, not only your own bank. This covers situations where the receiving bank failed to detect or act on fraudulent accounts, such as accounts opened with stolen identity documents or accounts used to move scam funds. You complain to the receiving bank first, and then to AFCA if you’re not satisfied.
What changes under the Scams Prevention Framework
The Scams Prevention Framework (SPF) is a new law that requires banks, telcos and digital platforms to prevent, detect, disrupt, report and respond to scams. According to ASIC, businesses covered by the SPF must be members of AFCA by 1 September 2026, and most obligations start on 31 March 2027. From then, the answer to “do banks refund scammed money?” will depend more on whether the bank met its SPF obligations, and a bank that didn’t may have to compensate scam victims.
How to ask your bank for a refund, step by step
- Call your bank’s fraud line straight away. Ask them to stop or recall the transfer and to contact the receiving bank. Hours matter.
- Ask about a chargeback if you paid by card.
- Report the scam to ReportCyber and keep the reference number. Banks and AFCA will ask for it.
- Make a written complaint to your bank, and to the receiving bank if you know it. Explain what happened, when you reported it, and what you want.
- Go to AFCA if you’re not happy with the answer. AFCA is free for consumers.
- Get support. IDCARE helps if your identity was used, and the National Debt Helpline (1800 007 007) offers free financial counselling.
For a full checklist, see our guide on what to do in the first 24 hours after a scam.
What if you paid in crypto?
Your bank can’t reverse a crypto transaction. But every crypto payment is recorded on the blockchain, so the funds can often be traced to the exchange where the scammer tries to cash out, and that exchange can be asked to freeze the account. Read how crypto recovery in Australia works, or see our crypto scam recovery service. Be careful of anyone who promises to get your money back for an upfront fee: that is a recovery scam.
Frequently asked questions
Will my bank refund me if I was scammed into paying?
Not automatically. If you made the payment yourself, the bank usually treats it as authorised. Ask anyway, especially if the bank missed clear warning signs or the receiving account was already flagged.
Can a bank transfer be reversed in Australia?
Your bank can ask the receiving bank to return the money, but it can only be recovered if it is still in that account. That is why calling your bank within hours matters.
Where do I complain if my bank refuses?
Make a written complaint to the bank first. If you’re not satisfied with the response, you can lodge a free complaint with AFCA, against your own bank and, from 12 March 2026, against the receiving bank too.
If you’d like help working out your options, contact the CybearTrack team. We’ll tell you plainly what is and isn’t likely to be recoverable.
