Can I keep money paid to me in error?
Asked by: America Torp | Last update: February 14, 2026Score: 4.8/5 (65 votes)
No, you generally cannot keep money paid to you in error; it's legally not yours, and spending it can lead to legal trouble, including theft charges, so you should report it to the bank immediately to arrange for its return, as banks have a right to reclaim mistaken deposits and you're legally required to return them.
Can you keep money accidentally sent to you?
You are legally required to repay the total amount accidentally added to your account. You could face criminal charges if you cannot repay money mistakenly deposited into your account due to spending.
Are you obligated to return money paid in error?
The general principle that courts and scholars have articulated is that (subject to various exceptions and limitations) recipients are required to return mistaken payments to the payer.
Can you keep money if the bank makes a mistake?
The Short Answer: No, You Can't Keep It
Keeping money that isn't yours, even if it appears in your account by mistake, is illegal. Banks have the right to reclaim accidental deposits, and spending the funds could result in legal trouble.
Can I get my money back if I pay someone by mistake?
To get your money back from the wrong transaction, the first and foremost thing you should do is contact the bank and inform them regarding the mishap that happened while transferring money. Make sure to inform the bank as soon as possible.
Unknown Money Deposited In My Account | Can I Keep Money Paid To Me In Error | Unknown Credit
Can you keep money wrongly paid into your bank account?
No, you cannot keep money accidentally deposited into your account; it is illegal, and you are required by law to report it to your bank immediately, as spending it can lead to serious legal trouble, including theft or fraud charges, and you will be required to pay it back. Banks have systems to find these errors, and failing to return the money can result in significant penalties, even if the amount seems small.
Do I have to repay money paid to me in error?
The fact that a defendant honestly believes they were entitled to receive money is not a valid defence. However, a valid defence may instead arise if, as a result of the payment made, the defendant has changed their position in good faith and to such an extent that it would be unjust to require them to repay the money.
Is it a crime to keep wrongly transferred money to a bank?
Failing to return the money may be tantamount to theft, and you could face criminal charges, such as theft of property lost by mistake or receiving stolen property. Criminal charges may be made to get a court order to force you to repay the amount, and in some cases, you could even end up with probation or prison time.
What happens if a bank accidentally gives you money and you spend it?
If you're lucky, you might be allowed to repay what you misappropriated. However, if you can't do that quickly (and possibly even if you can), the bank may file charges so it can get a court order requiring you to repay. "If you have spent the money," says Weisselberger, "You must move fast to avoid more issues.
Can you reverse deposited money?
However, your bank can reverse a transaction when an open account was wrongly credited, and it can also reverse deposits when the money came by way of fraud or theft.
Is it illegal to keep money you were overpaid?
Overpayment Doesn't Equal Extra Money
Does the lucky employee have to give back that money, too? Yup. Both state and federal labor and employment laws give employers the right to garnish the future wages of an employee — subtract chunks from a worker's paycheck — in cases of overpayment.
Can you keep an accidental refund?
'Should I give back the 'accidental' full refund I got for an item I wanted to return?' Don't send the money back - that could be money laundering. The seller was in the wrong offering you 25% in the first place. The law says full refund, doesn't matter what you agreed to accept.
Can you keep the money a scammer sends you?
If you keep the scam money in your account, the app or bank will most likely remove it in time. If you spend it before the bank flags the suspicious activity, you might be expected to hand over an equal amount of money when the scam is uncovered.
What if money unexpectedly shows up in my account?
If money unexpectedly appears in your account, immediately contact your bank and do not spend the funds, as it's likely a mistake or potentially fraudulent, and spending it could lead to legal issues like theft charges; you'll need to let the bank correct the error, as the money belongs to someone else and will be removed, potentially causing overdrafts if you use it.
What do you do if someone accidentally sends you money?
If money is incorrectly transferred into your account, you should notify your bank. Your bank will then try to return the money to the sender.
How long does a bank have to correct an error?
If the financial institution determines an error occurred, within either the 10-day or 45-day period, it must correct the error (subject to the liability provisions of §§ 1005.6(a) and (b)) including, where applicable, the crediting of interest and the refunding of any fees imposed by the institution.
What to do if someone pays money into your account by mistake?
Legally, if a sum of money is accidentally paid into your bank or savings account and you know that it doesn't belong to you, you must pay it back.
What if money is credited in my account by mistake?
Inform the bank
Let your bank know about the error immediately. You can reach out to your account representative via email, contact the bank's customer service, or visit a branch directly. Provide them with all the necessary information, including account number, transaction date, and deposited amount.
What to do if money appears in an account?
Contact your bank immediately if: there's a payment from your bank account you don't recognise – this is known as an 'unauthorised transaction'
Is $5000 considered money laundering?
A $5,000 transaction * can* be considered money laundering if done with criminal intent or knowledge that funds are from illegal activities, especially if it's part of a series of transactions (e.g., over $5,000 in 7 days, or $25,000 in 30 days under some laws) to disguise illicit proceeds, but simply depositing $5,000 legally earned money isn't inherently illegal, though it might trigger bank scrutiny. The key is intent and the context of illegal activity, not just the amount, though specific reporting thresholds for banks exist (like $10,000 for IRS cash reporting).
How to recover money paid by mistake?
Fast reporting helps the bank reach the beneficiary bank sooner. This improves the chance of recovery, especially before the recipient withdraws or moves the funds. If it's UPI and you sent to a phone number/UPI ID you can reach, call/message politely and request a return transfer. Keep the message simple.
What is illegal money transfer?
Illegal money remittance refers to a criminal activity where online banking is exploited to carry out unauthorized transactions without the legitimate user's consent.
Can you keep money if a company accidentally overpaid you?
Legal Consequences: Keeping money that you know was mistakenly paid to you can be considered wage theft or unjust enrichment. Employers may take legal action to recover the funds.
Is it illegal to keep money someone accidentally sent you?
Yes, it's generally illegal and considered theft to keep money accidentally sent to you, as the law requires you to return funds that aren't yours; spending it or failing to notify your bank can lead to serious charges, even if it's a small amount, though banks often recover it, and you should contact them immediately and avoid using the funds.
Do I have to pay back if I get overpaid?
Steps to take if you are overpaid. In law, your employer/agency is allowed to recover an overpayment from your wages in full by deducting the whole amount from your next wages payment, unless your contract or policy states otherwise. However, recouping an overpayment in this way is often not reasonable.