TSB to refund all customers who fall victim to fraud | Business News
TSB has vowed to protect its 5.2 million customers if they are innocent victims of a scam.
The bank’s new “fraud refund guarantee” covers all transactional fraud losses, including cases where a customer is tricked into authorising payments to fraudsters.
The guarantee applies to losses incurred by new and existing customers on or after Sunday 14 April.
It sets TSB apart from its banking rivals in a move it hopes will help it recover customer confidence after last year’s IT problems.
Consumers elsewhere are usually refunded if a fraudster takes money from their account without them knowing but if they authorise the payment, the can struggle to get their money back.
These scams, where a person is tricked into thinking they are transferring money to a legitimate organisation, are known as authorised push payment (APP).
Some £354m was lost last year through these scams, around two thirds of it from personal accounts, according to trade association UK Finance.
Of that total amount, financial providers returned just £83m.
TSB executive chairman Richard Meddings said the bank wanted to provide “peace of mind” for customers.
He added: “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.”
The guarantee will not be applied to customers who abuse it – for example, by committing fraud on their own account or by repeatedly ignoring safety advice – and customers will still need to report the fraud to the bank, which will still investigate the claim.
Jenny Ross, Which? money editor, called for other banks to follow TSB’s lead, saying: “For years, people have lost life-changing sums of money to increasingly sophisticated scams, and then faced a gruelling battle to get their money back.
“We know that banks are far better placed to spot and prevent scams than their customers.
“Today, TSB has rightly recognised this and stepped up to take responsibility for refunding its customers across all types of fraud.
“Yet other high street banks are leaving their customers unprotected.
“All banks must now follow TSB’s lead and ensure that their own customers are not left paying for the cost of this crime.”