TSB launches bank fraud protection
Written by Hannah McGrath
TSB has announced a fraud guarantee scheme to cover customers who fall victim to any type of transactional fraud.
The fraud guarantee, the first such move from a UK bank, is aimed at ensuring that its 5.2 million customers are refunded if they are an innocent victim of fraud, including unauthorised transactions or instances where they are tricked into authorising payments to fraudsters.
The bank said the guarantee would not apply to customers who commit fraud on their own account, and those found to be attempting to abuse the guarantee, for example by repeatedly ignoring safety advice, may be excluded.
At present, UK banking customers are entitled to compensation for fraud losses in limited circumstances.
Research from Shieldpay suggested that one in four UK consumers was impacted by online fraud in 2018, as the number of digital transactions and online continue to grow.
Statistics released by UK Finance showed that over £1.2 billion was stolen by criminals committing bank fraud last year.
Richard Meddings, executive chairman of TSB, said: “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.
“We want to provide peace of mind to our customers, that’s why we’re proud to announce the TSB Fraud Refund Guarantee. If a TSB customer innocently suffers a fraud loss on their account after being targeted by a criminal, we’ll cover it.”