Will Monzo Refund Scammed Money?

Monzo can refund money stolen by fraudsters but is not obligated to do so in every case. The outcome depends on the transaction type, whether the client authorised the payment, and whether the claim meets the applicable reimbursement rules. For unauthorised transactions, Monzo applies standard fraud protections. For authorised push payment scams, new industry rules effective from October 2024 provide a reimbursement framework with a £85,000 limit. For card payments, the Mastercard chargeback mechanism applies. Immediate notification through the Monzo app is the critical first step – the bank identifies in-app chat as the best way to reach its support team.

When Monzo Is Obligated to Refund

The determining factor is how the transaction is classified. Monzo applies distinct categories: unauthorised fraud where someone used the client’s card or account without permission, card disputes processed through the Mastercard chargeback mechanism, and APP scams where the client was deceived into sending money to a fraudster. Each category carries different refund obligations, procedures, and timelines. Monzo explicitly separates unauthorised fraud from scam payments and maintains different contact channels for each category. This classification determines the applicable rules and the client’s prospects of recovery.

Unauthorised Transactions

Where someone used the client’s card without their permission, Monzo treats the case as unauthorised fraud. The client reports the fraud through the app and freezes the card to prevent further debits. Under PSD2, the payment service provider is required to refund the full amount of an unauthorised transaction unless it can demonstrate gross negligence or fraud on the part of the client. A victim of account takeover or card theft who could not have prevented the unauthorised access through reasonable care is not considered to have acted with gross negligence. The burden of proving gross negligence lies with the bank.

APP Scam Reimbursement – New Industry Rules

Monzo states that new industry rules apply to transfers made from 7 October 2024. Transfers made before this date do not fall under the new rules, though Monzo may still investigate the case and assess the possibility of reimbursement. The maximum reimbursement limit is £85,000. In some cases, the first £100 of the claim may not be paid depending on the client’s circumstances. For eligible APP fraud claims, Monzo usually reimburses within 5 business days. More complex cases may take up to 35 business days. Eligibility depends on the circumstances – the claim must constitute a genuine scam and the client must not have acted with gross negligence.

Card Payments – Chargeback Through Mastercard

For card transactions, Monzo uses the dispute and chargeback mechanism through Mastercard. The dispute is submitted for a specific card transaction in the app. The chargeback process can take up to 12 weeks because timeframes are determined by Mastercard, not by Monzo. Chargeback is available for unauthorised card transactions, non-delivery of goods or services, and material discrepancy between what was received and what was represented. A successful outcome is not guaranteed – the result depends on the payment scheme rules and the facts of the specific case.

When Monzo Refuses a Refund

Monzo refuses refunds in several documented situations. First – the claim does not fall under the applicable fraud rules for the transaction date. Second – based on the case materials, Monzo or the Financial Ombudsman concludes that the bank was not obligated to reimburse the losses. Third – the client authorised the transfer and the circumstances do not meet the eligibility criteria for APP scam reimbursement. Published Financial Ombudsman decisions confirm that Monzo does not reimburse all scam losses automatically and every dispute is assessed on its specific facts. A refusal by Monzo is not final – the client is entitled to escalate through the complaints procedure and subsequently to the Financial Ombudsman Service.

Immediate Steps After Discovering Fraud

Step 1 – Report to Monzo Through the App

The primary channel is the in-app chat. Monzo states that this is the best way to reach its support team. For urgent fraud reporting by phone, Monzo provides the number 0800 088 4040 from the UK and +44 20 3872 0620 from abroad. For scam and APP fraud cases specifically, Monzo provides a separate number: 0800 802 1281 from the UK and +44 20 3872 0620 from abroad. If the client has no access to the app, email is available at help@monzo.com. For card fraud, the card should be frozen immediately through the app to prevent further unauthorised transactions.

Step 2 – Preserve All Evidence

All correspondence with the fraudster, account details, payment confirmations, transaction reference numbers, recipient details, website links, and phone numbers must be preserved without alteration. Screenshots of fraudulent websites and communications should be taken before the fraudster deletes their infrastructure. Digital evidence forms the foundation for Monzo’s internal review, the chargeback procedure, and any subsequent regulatory or judicial proceedings.

Step 3 – File a Police Report

In parallel with notifying Monzo, a police report should be filed. In the UK, fraud reports can be submitted to Action Fraud online or by phone at 0300 123 2040. The police report is an important evidentiary document in dispute proceedings. A criminal complaint filed with the relevant cybercrime unit initiates an investigation with access to bank records and payment system data.

Step 4 – Submit a Formal Complaint if Monzo Refuses

Where Monzo refuses the refund, the client should submit a formal complaint. Monzo accepts complaints through in-app chat, by phone at 0800 088 4040 (or +44 203 872 0620 from abroad), by email at complaints@monzo.com, or by post to Complaints Team, Monzo, Broadwalk House, 5 Appold Street, London EC2A 2AG. Monzo confirms receipt of the complaint within 3 business days. After receiving Monzo’s final response, the dispute can be escalated to the Financial Ombudsman Service.

Alternative Recovery Mechanisms

Financial Ombudsman Service

Complaints about Monzo’s refusal to refund scam losses are regularly reviewed by the Financial Ombudsman Service. Published decisions show that outcomes depend on the type of scam, the client’s actions, warning signs, and the measures Monzo should have taken in the specific situation. Ombudsman decisions are binding on Monzo. Referral to the FOS is free of charge for the client.

Complaint to the Financial Regulator

Monzo Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority (FCA) and the PRA. FCA Financial Services Register number: 730427. A regulatory complaint does not return funds directly but initiates a supervisory review and creates regulatory pressure on the bank. Where systemic failures in fraud prevention or PSD2 compliance are identified, the regulator may require the bank to reconsider its position.

Civil Litigation

Civil proceedings against Monzo are available where a breach of PSD2 obligations is proven, Strong Customer Authentication was not applied, suspicious transaction patterns were ignored, or fraud notifications received an inadequate response. Civil proceedings against the fraudster are available in parallel where the fraudster is identified and their assets are located. The European Account Preservation Order (EAPO) enables the freezing of the fraudster’s assets across all EU member states simultaneously.

Criminal Proceedings

A criminal complaint filed with the relevant national cybercrime unit or through Action Fraud initiates an investigation in which law enforcement authorities gain access to bank records, IP logs, payment system data, and telecommunications operator records. Criminal investigation is the primary tool for identifying anonymous fraudsters and tracing the movement of stolen funds across jurisdictions.

Monzo Contact Details for Fraud Enquiries

Monzo is a digital bank with no traditional branch network. The primary communication channel is the in-app chat. Bank name: Monzo Bank Limited. Company number: 09446231. Head office: Broadwalk House, 5 Appold St, London EC2A 2AG, United Kingdom. Fraud phone (UK): 0800 088 4040. Fraud phone (abroad): +44 20 3872 0620. Scam / APP fraud phone (UK): 0800 802 1281. Support email: help@monzo.com. Phishing reports: phishing-reports@monzo.com. Complaints email: complaints@monzo.com. Escalation of complaints: Financial Ombudsman Service.