TSB to reimburse all customers hit by bank fraud

Valentina Cipriani 15 April 2019 NEWS

Picture not described: TSB_branch_738.jpg Image: Getty

All TSB customers will be refunded if they fall victim of fraud – including when they have been tricked into authorising a payment.

TSB has unveiled its Fraud Refund Guarantee, a scheme that will protect customers from bank fraud by refunding losses up to £1 million. It’s the first scheme that pledges to reimburse customers even when they mistakenly authorise a fraudulent transaction themselves.

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In April last year, TSB suffered a major IT accident, with millions of customers being locked out of their online accounts or being able to view other people’s details. Fraudsters took advantage of it and approached a number of TSB customers in the following weeks, trying to trick them into revealing their banking codes.

No banks will ever contact you asking for your PINs or passwords, so you should always treat any request of that kind as fraud.

“The vast majority of fraud claims across UK banking are from innocent victims of fraud, who have been targeted by criminals and organised gangs. However, all too often these customers must fight to be refunded and are not treated as victims of crime,” said TSB’s executive chairman Richard Meddings.

According to trade association UK Finance, in 2018, fraudsters stole around £1.2 billion from banks – almost a third (£354 million) of which came from authorised payment scams. When consumers are tricked into authorising the payment themselves, it can prove very hard, if not impossible, for them to obtain compensation from their bank.

TSB’s anti-fraud scheme is already in effect and will apply to all scams that happened from 14 April 2019 onwards.

Picture: TSB

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