Can You Claim Compensation After a Phishing Attack?
Falling victim to a phishing attack can be distressing and financially damaging. Fraudsters are becoming increasingly sophisticated, targeting individuals and businesses through convincing emails, texts, and phone calls designed to steal sensitive information.
If you have lost money because of a phishing scam, you may be able to claim compensation. Understanding your rights and the legal options available is essential to protecting your financial position and recovering your losses wherever possible.
What Is a Phishing Attack?
A phishing attack involves a fraudster impersonating a legitimate organisation or person to deceive you into providing confidential information such as login credentials, bank details, or personal data. Once obtained, this information is used to access your accounts, transfer funds, or commit further fraud.
Phishing attacks commonly occur through:
- Emails that appear to come from banks, government agencies, or companies
- Text messages (SMS phishing or “smishing”)
- Telephone calls (voice phishing or “vishing”)
- Fake websites designed to capture login details
The result can be financial loss, identity theft, or both.
Can You Recover Money Lost Through Phishing?
It is often possible to seek compensation after a phishing attack, but the prospects of recovery depend on several factors:
1. Bank Reimbursement
Under the UK’s Contingent Reimbursement Model Code (CRM Code), many banks are expected to reimburse victims of authorised push payment (APP) scams, provided the victim was not grossly negligent. Even if a bank is not signed up to the CRM Code, victims can still raise complaints through the bank’s internal complaints procedure or escalate the matter to the Financial Ombudsman Service (FOS). Banks have a duty to detect unusual activity and protect customers from fraud. If your bank failed to act reasonably, you may have grounds for compensation.
2. Claims Against Negligent Third Parties
In some cases, if a third party (such as a company that held your data) was negligent in protecting your personal information and that led to the phishing attack, you may have a claim for data breach compensation under the UK General Data Protection Regulation (UK GDPR).
3. Legal Action Against the Fraudsters
Although pursuing fraudsters directly can be difficult, especially if they operate internationally or anonymously, it is sometimes possible to trace stolen funds through court orders and take recovery action. This can involve freezing orders, disclosure orders against banks, and civil recovery proceedings.
Acting quickly increases the chances of tracing and recovering stolen assets.
What Should You Do After a Phishing Attack?
If you suspect you have fallen victim to a phishing scam, it is important to:
- Contact your bank immediately to report the fraud and attempt to freeze transactions
- Report the incident to Action Fraud, the UK’s national fraud reporting centre
- Keep records of all communications and transactions linked to the scam
- Change all compromised passwords and secure your accounts
- Seek legal advice as soon as possible to assess your options for recovery
Taking swift action can make a significant difference in the success of recovery efforts.
How Pembridge Solicitors Can Help
At Pembridge Solicitors, we provide clear, strategic advice for victims of phishing attacks and cyber fraud. Our services include:
- Advising on compensation claims against banks or financial institutions
- Assisting with complaints to the Financial Ombudsman Service
- Taking legal action to trace and recover stolen funds
- Advising on data breach claims linked to phishing attacks
- Representing clients in fraud-related litigation
We understand the urgency and sensitivity involved in financial fraud matters and are committed to protecting your interests at every stage.
Final Thoughts
While phishing scams can cause serious financial harm, you are not powerless. Depending on the circumstances, you may be entitled to compensation from your bank, a negligent third party, or even by taking civil action against fraudsters.
If you have lost money due to a phishing attack, early legal advice can significantly improve your chances of recovering your losses.
Contact Pembridge Solicitors today for expert legal advice on phishing and fraud claims:
Pembridge Solicitors
Calderwood House, Montpellier Parade, Cheltenham, GL50 1UA
Telephone: 0330 900 0377
Email: info@pembridgesolicitors.co.uk
Website: www.pembridgesolicitors.co.uk
