Recovering losses

Can I get my money back after a scam? The honest answer

Updated 30 July 2026 · 10 min read · Written in Australia

Sometimes, and speed decides it. If the money hasn't yet been moved out of the receiving account, your bank may be able to recall it or have it frozen — that window is usually hours, not days. Beyond that, recovery depends on whether a bank breached its obligations, not on the fact you were deceived. Two things most people don't know: since 12 March 2026 you can complain to AFCA about the bank that received the money, even though you're not its customer, and the widely-reported $3,000 automatic refund is a proposal, not law.

This page exists because the honest answer sits between the two you'll usually be given: "the money's gone, forget it" and "Australia now refunds scam losses". Neither is right, and the second one is being repeated everywhere.

First, the part that actually determines the outcome

Almost everything depends on how fast the receiving bank is told. Scam money lands in a "mule" account — often opened with stolen identity documents, or belonging to someone recruited to move funds — and it gets forwarded on quickly, frequently offshore. Before it moves, it can sometimes be frozen. After, recovery becomes very hard.

So if you're reading this within a day of the loss, stop and ring the bank. The full first-hour sequence is here. Everything below still applies afterwards, but it applies to a smaller pot.

The right most people are never told about

Every guide says complain to your own bank. Far fewer mention the other one.

Since 12 March 2026, the Australian Financial Complaints Authority can consider complaints about the bank that received the money. You do not have to be a customer of that bank to complain about it.

That matters because the receiving bank is often where the failure actually was. Recognised grounds include:

Failing to freeze funds once notified of the scam.
Failing to detect or act on a fraudulently opened account — an account opened in someone else's name using stolen ID.
Failing to act on a mule account used to receive and forward stolen funds.

The order matters: complain to the receiving bank directly first, in writing. If you're not satisfied with the response, escalate to AFCA. It's free, and you don't need a lawyer.

Do the same with your own bank if something looks like it should have been caught. A first-ever transfer to a new payee, for an unusually large amount, from an account with no history of it — particularly if a "no match" warning appeared under Confirmation of Payee and the payment went through anyway. Ask what monitoring existed and why nothing intervened.

What the new law does and doesn't do

Australia's Scams Prevention Framework became law in February 2025 and is genuinely significant — obligations on banks, telcos and digital platforms, backed by civil penalties up to $50 million per contravention. But being precise about it matters, because it is widely misreported.

Reimbursement is not automatic. Under the framework, redress depends on whether a regulated business breached its obligations to prevent, detect, disrupt or respond — not simply on the fact a consumer was deceived. This is deliberately different from the UK model. Being scammed does not, by itself, create a right to a refund.

The timeline, as at July 2026:

Feb 2025 — the Act commenced.
1 July 2026 — first sector obligations took effect for banks, telcos and digital platforms.
1 Sept 2026 — the detailed rules commence; regulated businesses must be AFCA members for scam disputes.
1 Jan 2027 — AFCA begins hearing framework-aligned scam complaints.
31 March 2027 — broader obligations apply.

On the $3,000 figure: Treasury proposed that verified losses under $3,000 be automatically reimbursed without a full investigation. That was released for consultation on 28 May 2026 and consultation closed on 25 June 2026. As at July 2026 it is a proposal, expected to sit in Ministerial Guidance — not law. Don't plan around it, and be sceptical of any page telling you you're entitled to it.

What to do, in order

Both banks, immediately. Yours, to attempt a recall. The receiving bank, to ask them to freeze what's left. Do this by phone, then follow up in writing so there's a record of when they were told — that timestamp is what a later complaint turns on.
Get it in writing. Ask for the bank's decision and its reasons in writing. A verbal "sorry, nothing we can do" is not a decision you can escalate.
Complain formally to the bank. Every bank has an internal dispute resolution process, and they must tell you about your right to go to AFCA.
Then AFCA. Free, independent, and its determinations bind the bank. Complain about your own bank, the receiving bank, or both.
Report it regardless of recovery. Scamwatch feeds the National Anti-Scam Centre; ReportCyber creates the police report banks and insurers sometimes ask for.
Free help exists. National Debt Helpline on 1800 007 007 for financial counselling; IDCARE on 1800 595 160 if identity documents were exposed. Both free.

What will not get your money back

This is the important half, because the people who lose a second time lose it here.

What the recovery scam sounds like"Mrs Walker, I'm with the fraud recovery unit. We've traced the funds taken from your account and can begin recovery proceedings today. There's an administration fee of $450 to release the transfer."

Nobody legitimate charges a fee to recover scammed money. Not the police, Scamwatch, the ACCC, AFCA, or any bank. Any fee, "tax", "deposit" or percentage is a second scam.
Especially crypto "tracing" services. Fund-recovery websites and ads exist specifically to catch people searching for exactly this.
One in three scam victims is scammed more than once, and the follow-up is aimed at the wound: the wish to undo it.
Anyone who rings claiming to follow up your Scamwatch report and asks for payment or remote access is not who they say they are.

The uncomfortable arithmetic

Australians lost $2.18 billion to scams in 2025. Most of it is never recovered, and pretending otherwise doesn't help anyone plan.

Which is why the most useful thing on this page may be the least satisfying: the measures that stop the next loss cost almost nothing, and they work whether or not anyone spots the scam. Lowering a daily transfer limit takes two minutes and caps the worst possible afternoon. Three more like it here.

And if the gap is that someone was unsure and had no quick way to check, that's what Is it a scam? is for — one Australian number, any text, email, photo or description of a phone call, a plain answer in seconds, and the family told when it's real. It won't recover what's gone. It's the cheapest thing that stops it repeating.

Common questions

Will my bank refund a scam payment?

Not automatically. If the money is still sitting in the receiving account they may be able to recall or freeze it, and that window is usually hours. Beyond that, reimbursement under Australia's Scams Prevention Framework depends on whether a business breached its obligations, not on the fact you were deceived. Complain in writing, then escalate free of charge to AFCA.

Is it true Australia now automatically refunds scam losses under $3,000?

No, not yet. Treasury proposed automatic reimbursement for verified losses below $3,000, released for consultation on 28 May 2026 with consultation closing 25 June 2026. As at July 2026 it remains a proposal expected to sit in Ministerial Guidance, not law. Be cautious of pages stating it as a current entitlement.

Can I complain about the bank that received the money?

Yes. Since 12 March 2026 AFCA can consider complaints about the receiving bank, and you do not need to be its customer. Grounds include failing to freeze funds once notified, and failing to detect or act on a fraudulently opened or mule account. Complain to that bank directly first, in writing, then escalate to AFCA.

How long do I have to act before the money is unrecoverable?

Practically, hours. Scam funds are moved out of the receiving account quickly and often offshore. Ring both banks before doing anything else, including working out exactly what happened, and follow up in writing so there is a record of when each was notified — that timestamp matters in any later complaint.

Does AFCA cost anything?

No. AFCA is free for consumers and you do not need a lawyer. Its determinations are binding on the financial firm. You must generally complain to the bank first and give it a chance to respond before AFCA will consider the matter.

Someone offered to recover my money for a fee. Is that real?

No. No legitimate organisation charges a fee to recover scammed funds — not police, Scamwatch, the ACCC, AFCA or any bank. Recovery offers are a second scam, frequently run by the same people, and they specifically target those who have just lost money. One in three scam victims is scammed more than once.

Is it worth reporting if I know the money is gone?

Yes. A ReportCyber police report is sometimes required by banks and insurers, and Scamwatch reports feed the National Anti-Scam Centre, which is how campaigns get traced and fake sites taken down. It also creates a dated record if the matter is later disputed.

What if the bank says no and I disagree?

Ask for the decision and its reasons in writing, then take it to AFCA at no cost. A verbal refusal is not something you can escalate. Free financial counselling is also available through the National Debt Helpline on 1800 007 007, which can help you frame the complaint.

The cheapest thing that stops it repeating

Is it a scam? gives one Australian number to send anything to — text, email, photo, or a description of a phone call — and a plain answer in seconds. No app, and the family told when it's real.

See how it works

Written by the Is it a scam? team. We build scam protection for older Australians and their families, from the Sunshine Coast, Queensland. This article is general information, not legal or financial advice.