TSB thinks of a refund guarantee for fraud victims

The move is a first in the UK banking industry, and it’s meant to put customers at the heart of a new strategy to tackle the fast-growing problem of bank fraud in the digital age. In April 2018, thousands of customers locked out of their TSB accounts were exploited by scammers, underlining the growing sophistication of fraudsters.

As such, the bank is likely to commit to protecting against all types of transactional fraud losses up to a cap of GBP 1 million, including cases where TSB customers have been tricked into authorising payments to fraudsters. Moreover, a voluntary code of conduct which will guarantee refunds for ‘innocent’ victims for banks comes into force at the end of May, however TSB’s new guarantee is likely to go further than this.