TSB announces UK’s first fraud refund guarantee to protect customers
TSB has announced a UK banking first, a fraud refund guarantee to ensure the bank’s 5.2 million customers are protected if they are an innocent victim of fraud.
TSB’s announcement marks a significant step-change in banking, where today customers are only refunded for fraud losses in limited circumstances. Moving forward, TSB’s customers will be refunded for any loss they’ve suffered from their account as a result of third-party fraud.
Bank fraud is a rapidly growing problem and has a devastating effect on consumers across the UK. As people are increasingly going digital and online shopping has doubled over the past five years, the propensity for fraud has also increased, as has the sophisticated means by which consumers are targeted – with one in four Brits falling victim to online fraud last year.
Statistics released by UK Finance show that over £1.2 billion was stolen by criminals committing bank fraud last year.
"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," TSB executive chairman Richard Meddings said.
"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."
TSB’s Fraud Refund Guarantee came into effect on 14 April 2019 and TSB will be communicating its terms to its customers.