TSB to unveil refund guarantee for fraud victims

TSB is poised to unveil a “fraud refund guarantee” to ensure its 5.2 million customers are reimbursed in full if they are an innocent victim of a scam.

The move – a first in the UK banking industry – will put customers at the heart of a new strategy to tackle the fast-growing problem of bank fraud in the digital age.

In last April’s online IT banking fiasco, thousands of customers locked out of their TSB accounts were then exploited by scammers, underlining the growing sophistication of fraudsters.

The bank is likely to commit to protecting against all types of transactional fraud losses up to a cap of £1 m, including cases where TSB customers have been tricked into authorising payments to fraudsters.