Tesco Bank has confirmed that online payments for current account customers have been frozen after money was fraudulently withdrawn from 20,000 accounts.

Tesco Bank’s fraud prevention systems identified suspicious activity on 40,000 customer accounts, with around half of this number losing money.

Benny Higgins, chief executive at Tesco Bank, commented: “While online transactions will not be available, current account customers will still be able to use their cards for cash withdrawals, chip and pin payments, and all existing bill payments and direct debits will continue as normal. We are working hard to resume normal service on current accounts as soon as possible.

"We continue to work with the authorities and regulators to address the fraud and will keep our customers informed through regular updates on our website, twitter and direct communication.”

Speaking to the BBC, Higgins added that Tesco is “very hopeful” that customers will be refunded within 24 hours, stating that “any financial loss that results from this fraudulent activity will be borne by the bank. Customers are not at financial risk.”

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