How do I claim back money lost in a scam?

Authorised Push Payment (APP Fraud) is an industry term for when a fraudster manipulates or deceives a customer into making a payment, or disclosing personal details to, a third party, with the false expectation that they were dealing with a genuine person. At PayPal, we refer to this as a “scam” and to the fraudsters as “scammers”.

Many scammers now ask for payments to be sent through peer-to-peer (P2P) payment services such as the ones offered by PayPal.

From October 7, 2024, there are industry-wide changes to the way scam victims can claim back their money in the UK. The Payment Systems Regulator (PSR) requires UK payment service providers to reimburse Authorised Push Payment (APP) fraud up to a maximum of £85,000 when the scam payment uses the UK’s Faster Payments and CHAPS systems.

The majority of PayPal payments do not use these systems and will not qualify for this reimbursement scheme. PayPal Buyer Protection will provide protection from scams in some instances, as outlined in this article.

How do I report a scam?

If you believe you have fallen victim to a scam, report it straight away in our Resolution Centre.

Will PayPal refund me my money?

At PayPal, the PSR reimbursement scheme applies to the following bank payments, which use the relevant payment systems:

• topping up a PayPal account with money from a bank account, or
• making a withdrawal to a bank account.

In scam cases involving these payments, PayPal will comply with the PSR reimbursement scheme. Other PayPal payments are not covered by the PSR reimbursement requirements, but you may be covered by our own Buyer Protection programme.

What PayPal payments are not covered by the PSR reimbursement scheme?

The following PayPal payments do not use the relevant payment systems and are not eligible for the PSR reimbursement scheme:

• sending money (a friends and family payment),
• sending money (a goods and services payment), or
• paying a business at checkout with PayPal.

In scam cases involving paying a business at checkout or sending money as a goods and services payment, you may be eligible for a refund under PayPal Buyer Protection.

When sending money as a friends and family payment, you are not eligible for Buyer Protection.


Is my scam payment covered by PayPal Buyer Protection?

You may be entitled to a refund under Buyer Protection if the scam payment related to:

• goods that did not arrive,
• charges for the wrong item, or
• goods that do not match the description or arrive damaged.

We review each case and if we decide the claim in your favour, we will reimburse you.

Some payments that are not eligible for Buyer Protection include:

• sending money (a friends and family payment),
• prepaid cards,
• motor vehicles,
• Investment purchases,
• real estate,
• wholly or partly custom-made items, and
• cryptocurrency.

Further terms and exclusions can be found here.

Where can I find more information about scams and protecting myself?

Visit our Security Centre to learn more about scams, including the steps we take to protect you and advice on how you can improve your own security.