# Awareness low on new scheme that can help charities reclaim money lost to scams

- Link: https://fundraising.co.uk/2025/01/15/awareness-low-on-new-scheme-that-can-help-charities-reclaim-money-lost-to-scams/
- Published: 2025-01-15T09:00:00+00:00
- Author: Melanie May

**UK charities that fall victim to fraud are eligible to reclaim lost funds through
their banks, but few are aware of the opportunity, says a fraud recovery law firm.**

Since 7 October last year, payment service providers (PSPs) including banks are 
obliged to pay back any charities that may have lost money to fraud though Authorised
Push Payments or CHAPS payments.

But National Fraud Helpline solicitors, a trading name of Richardson Hartley Law,
says very few charities are aware of the scheme.

## Advertisement

The new mandatory reimbursement was introduced by the Payments Systems Regulator(
PSR), which also helps consumers and small businesses recover fraud money. It requires
PSPs to pay back up to £85,000 of money lost through scams unless they can prove
a charity was ‘grossly negligent’.

Those with an annual income of less than £1 million that match the definition of
a charity under the Charities Act 2011 are eligible.

Martin Richardson, a senior partner at National Fraud Helpline solicitors, said:

> “This mandatory reimbursement scheme for fraud victims covers more than 95% of
> the UK’s charities but very few are aware of it.
>  
> “Although the PSR scheme only covers up to £85,000 of lost funds, the Financial
> Ombudsman Service can order banks to pay up to £430,000.
>  
> “Banks should be highlighting the fact that this scheme exists. It’s important
> that charities are aware of the fact that they if they fall victim to fraud then
> there is help. Every organisation is vulnerable to scams, particularly as the 
> fraudsters become more ever more sophisticated and take advantage of technological
> advances.”

Under the new regulations banks should reimburse charities that have a valid fraud
claim within five working days.

 * **[Fraud and scams](https://fundraising.co.uk/1999/06/10/fraud-and-scams/)** (
   10 June 1999)
 * **[Bogus grantmaking offer misuses CARE International's name](https://fundraising.co.uk/2005/02/24/bogus-grantmaking-offer-misuses-care-international039s-name/)**(
   24 February 2005)
 * **[New fraud prevention guidance issued to help the public](https://fundraising.co.uk/2017/10/26/new-fraud-prevention-guidance-issued-help-public/)**(
   26 October 2017)