It starts with a message that feels reassuring. A refund you’re owed. A mistake that’s being fixed. Money coming back to you. But across the UK, thousands of people are discovering that this new “refund” scam doesn’t return money at all — it drains accounts in minutes.
Consumer groups say losses are rising sharply in early 2026, with some victims losing £500, £1,000, or more before they even realise what’s happening. The scam is spreading fast, and it’s catching people who consider themselves careful.
Here’s how it works — and why it’s so dangerous.
How the New Refund Scam Works
Unlike older scams filled with spelling errors or obvious threats, this one feels polished and believable.
Victims typically receive:
- A text, email, or phone call claiming a refund is due
- Messages pretending to be from banks, delivery firms, HMRC, or major retailers
- A warning that action is needed quickly to “release” the refund
Once the victim clicks a link or follows instructions, scammers guide them through steps that give direct access to their bank account or card details.
In many cases, the money is gone within minutes.
Why People Are Falling for It
This scam exploits trust and urgency.
Scammers often reference:
- Recent purchases
- Energy bills or overpayments
- Council tax or tax refunds
- Failed card transactions
Because refunds are common during the cost-of-living squeeze, the message doesn’t raise immediate alarm.
“It sounded completely normal,” said Karen Whitfield, 54, from Kent.
“They knew my name and the company I’d ordered from. By the time I realised, £780 had gone.”
What Makes This Scam Different
Experts say this scam is more effective because it combines several techniques at once:
- Spoofed phone numbers that appear legitimate
- Fake but professional-looking websites
- Live guidance, where scammers stay on the phone while money is moved
- Pressure tactics, claiming the refund will expire
Some victims are even told to approve payments themselves, making recovery harder.
Real Stories Behind the Losses
James, a 32-year-old self-employed electrician from Manchester, received a call claiming he was owed an overpayment refund.
“They walked me through it step by step,” he said. “I thought I was logging in to confirm my details. Instead, I approved payments I didn’t understand.”
He lost just over £1,200 in under ten minutes.
For pensioner Anne Roberts, 71, the scam arrived by text.
“It said my energy account had a credit. With prices being what they are, I thought it was good news,” she said. She lost £520, most of her monthly disposable income.
What Banks and Authorities Are Saying
Banks say they are seeing a spike in refund-related fraud reports and are urging customers to slow down before acting.
A banking industry spokesperson said:
“No legitimate organisation will ask you to move money, share one-time passcodes, or stay on the phone while transactions happen.”
Authorities warn that scammers often coach victims on what to say if a bank questions a transfer.
Key Warning Signs to Watch For
Be alert if a “refund” message includes:
- Urgent deadlines or threats
- Requests to share one-time passcodes
- Instructions to move money to a “safe” account
- Pressure to stay on the call
- Links asking you to log in immediately
Even if the message looks real, these are red flags.
What To Do If You’re Contacted
If you receive a refund message or call:
- Stop and do not click links
- Do not share codes or login details
- Contact the company or bank using a trusted number
- Talk to someone before acting
- Trust your instincts — urgency is a tactic
Taking just a few minutes can prevent major losses.
Questions and Answers
1. Is this scam happening across the UK?
Yes. Reports are coming from all regions.
2. How much are people losing?
Losses commonly range from £500 to several thousand pounds.
3. Are older people the main targets?
No. Victims include all ages, including professionals and young adults.
4. Do banks always refund the money?
Not always, especially if payments were authorised.
5. Can texts look genuine?
Yes. Scammers often spoof real numbers and branding.
6. What if I clicked a link but didn’t pay anything?
Contact your bank immediately and monitor your account.
7. Are emails or phone calls more common?
All methods are being used, including texts, calls, and emails.
8. Why do scammers mention refunds?
Refunds lower suspicion and create urgency.
9. Should I report it?
Yes. Reporting helps banks and authorities track patterns.
10. Can this happen again to the same person?
Yes. Scammers often target previous victims.
11. Are businesses responsible for the messages?
No. Legitimate businesses do not send refund links this way.
12. What’s the safest rule to follow?
Never act on refund messages without independently checking.
Why This Scam Is Spreading in 2026
With household finances stretched and digital payments now routine, scammers know refunds feel believable — even welcome. That makes this scam especially cruel and effective.
Awareness is currently the strongest defence. Sharing information could save someone else from losing money they can’t afford to lose.
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