Reimbursement isn't automatic
Federal rules (Regulation E) require banks to investigate unauthorized electronic transfers and generally cap your liability. But there's a well-documented gap: a transfer you were tricked into authorizing yourself — like sending money via Zelle after a scammer posing as your bank convinced you to "move funds to a safe account" — often falls outside that protection, because the system recorded it as authorized. And that's exactly the kind of scam that's growing fastest:
Past that 72-hour window, recovery odds drop sharply — and for most reported losses, no money is ever recovered at all.
The paperwork trail, step by step
It's not "a few forms." Here's what a victim actually has to do, in order — built from the FTC's own IdentityTheft.gov recovery plan and standard bank dispute procedure:
- Contact every company where fraud occurredcard issuers, banks, retailers
- File a report at IdentityTheft.govFTC — generates an official Identity Theft Report
- File a report with the FBI's IC3ic3.gov, for internet-enabled fraud
- Place a fraud alert with one credit bureauit must legally notify the other two — lasts 1 year
- Consider a full credit freezecontact Equifax, Experian, and TransUnion separately
- File a local police reportoften required by banks and insurers as proof
- Dispute the transaction with your bankcite Regulation E in writing
- Gather evidence — screenshots, statements, timestampsby yourself
- Escalate to the CFPB if the bank denies or stallsconsumerfinance.gov/complaint
- Notify the Social Security Administration if your SSN was exposedssa.gov
- Warn contacts who may become secondary targetsby yourself
- Monitor accounts and credit reports for months afterwardrecurring, not one-time
If you're in the UK: the exact steps with Action Fraud, 7726 and the 159 bank hotline →
The price of fighting back
Many victims consider hiring an attorney, especially after a denied reimbursement claim. Here's what that actually costs, compared to a year of Egidio protection:
A lawyer in the US (2026)
A year of Egidio
A single hour with a consumer fraud attorney costs at least six times what a year of individual protection costs — and most cases take more than one hour of billable time.
Justice, not guaranteed
What the numbers don't say
There's a cost that statistics measure poorly: what comes after. A 2025 Gallup survey found that 73% of Americans in households affected by a scam reported a negative impact on their mental health or well-being — shame, self-blame, and a sense of betrayal that often outlasted the financial loss itself, regardless of the amount involved. These are documented reactions, not personal weaknesses.
That's not a reason for more guilt — it's one more reason detection should happen before, not after. A family member who gets an alert at the right moment avoids both the financial loss and everything that comes with it.
What actually changes the odds: acting before, not after
None of the above is inevitable — it's exactly what Egidio is built to prevent upstream. See the math between Egidio's price and the average cost of a scam, or how to protect your parents, often the most exposed. Or see how to protect your parents from scams →
Nothing happened, just a close call? What a successful vigilance reflex reveals, and why to reinforce it now →
Does your contract cover this type of fraud? What ten official bank and insurer notices actually state, one by one →
Frequently asked questions
Will my bank automatically reimburse me after a scam?
Not automatically, and not always. Transfers you were tricked into authorizing yourself — like a Zelle payment sent after a scammer posed as your bank — often fall outside federal protection because the system recorded it as authorized. Reimbursement rates at the largest Zelle-owning banks fell from 62% in 2019 to 38% in 2023.
How likely is it that stolen funds get recovered?
It depends heavily on speed. The FBI's Recovery Asset Team freezes funds successfully in roughly 58-66% of eligible cases — but eligibility generally requires reporting within about 72 hours. Past that window, recovery odds drop sharply.
How much does a consumer fraud lawyer cost?
Consumer protection attorneys typically charge $200 to $500 an hour, with $400-700/hour common in major cities. The general average across all practice areas is around $349/hour.
How many steps does identity theft recovery actually take?
Around a dozen: reporting at IdentityTheft.gov, filing an FTC and/or IC3 report, contacting every affected company, placing a fraud alert or credit freeze with all three credit bureaus, filing a police report, disputing with your bank, escalating to the CFPB if needed, and monitoring your accounts for months afterward.
Does being scammed actually affect mental health?
Yes, measurably. A 2025 Gallup survey found 73% of Americans in households affected by a scam reported a negative impact on their mental health or well-being, with shame and self-blame among the most common and longest-lasting reactions.