I transferred money to the wrong account, or paid by mistake. Can I get it back?

One wrong digit in an account number, a duplicated invoice payment, or a transfer to an old supplier's account: mistaken payments happen to individuals and businesses alike. The law is on your side, but speed and records matter.

Does the recipient have to pay it back?

Yes. Section 73 of the Contracts Act 1950 provides that a person to whom money has been paid, or anything delivered, by mistake or under coercion, must repay or return it. The duty does not depend on a contract between you and the recipient. It arises from the fact that the money was paid by mistake.

The recipient may argue that the money was actually owed, that it was a gift, or that they have already spent it in good faith. These are fact questions, and your records will usually answer them.

What should I do immediately?

1. Call your bank and report the mistaken transfer. Give the date, time, amount, the account you paid and the reference. Ask what the bank can do under its procedures for mistaken or erroneous transfers, and ask for confirmation in writing.
2. Keep the evidence: the transaction receipt, screenshots of the banking app, and the correct account details you meant to use.
3. Do not harass the recipient or post their details online. That can create a separate dispute.
4. If you suspect a scam rather than a mistake, report it at once to your bank and to the National Scam Response Centre (997), and lodge a police report.

Banks generally cannot reverse a completed transfer without the recipient's consent or a legal basis, but they can contact the receiving bank, and the receiving bank can contact its customer. Bank Negara Malaysia publishes consumer information on banking complaints.

Have a question about your own situation? Ask on WhatsApp

What if the recipient refuses?

• Letter of demand: if you know who the recipient is, send a written demand setting out the payment, the mistake and a deadline.
• Court claim: smaller sums can go through the small claims procedure in the Magistrates' Court; larger sums are claimed in the appropriate court with a writ.
• Identity unknown: if you have only an account number, the court process may be needed to obtain the account holder's details from the bank.
• Urgency: if a large sum is at risk of being moved away, ask whether an injunction is suitable. See Mareva injunctions.

Is there a time limit?

Contract and quasi-contract claims generally have six years (Limitation Act 1953, s.6(1)(a)). For an action for relief from the consequences of a mistake, time does not begin to run until the claimant discovered the mistake or could with reasonable diligence have discovered it (s.29). Do not rely on this: act promptly, while the money is still traceable.

Can it be a crime to keep the money?

A person who knows money is not theirs and dishonestly uses it as their own may face criminal liability, for example for dishonest misappropriation of property under the Penal Code. Whether a police report is appropriate depends on the facts. A civil claim for repayment can be pursued regardless.

Example

A company's accounts clerk pays RM12,500 twice for the same invoice. The supplier refuses to refund, saying it will "offset future orders". The company has no further orders planned. It sends a letter of demand citing section 73, then files a claim with the two bank records and the invoice.

Common mistakes

• Waiting days before calling the bank.
• Messaging the recipient angrily instead of sending a clear written demand.
• Assuming the bank must refund you. The bank is usually not the party that received the money.
• Mixing up a mistaken payment with a scam: the reporting steps differ.

When to speak to a lawyer

Speak to a lawyer if the sum is significant, if the recipient refuses or cannot be identified, or if the money may be moved away. See our civil litigation page; you can also contact us.

Frequently asked questions

The recipient says they already spent it. Do they still have to repay?

Generally the duty to repay remains, although a recipient may raise defences depending on the facts, such as a genuine change of position in good faith.

Can I sue the bank instead?

Usually not for a mistake you made yourself. A claim against a bank depends on whether the bank breached its own obligations.

Is a small claim worth filing for a few thousand ringgit?

The small claims procedure is designed for modest sums and allows individuals to act without lawyers. Check the current limit with the court.

Sources & fact check

Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.

1. Contracts Act 1950 (Act 136), AGC Laws of Malaysia
2. Limitation Act 1953 (Act 254), including section 6, AGC Laws of Malaysia
3. Penal Code (Act 574), Attorney General's Chambers Laws of Malaysia
4. Bank Negara Malaysia (Central Bank of Malaysia), official portal

Fact-checked on 17 Oct 2026