You are here: Home - Saving & Banking - News -

BLOG: TSB has led with fraud promise, now other banks should follow

Written by:
TSB has become the first bank in the UK to promise to reimburse all customers who fall victim to fraud.
BLOG: TSB has led with fraud promise, now other banks should follow

This means customers will get their money back whether the fraud was a result of an unauthorised transaction on their account or they were tricked into authorising payments to fraudsters.

Banks are currently not obliged to refund customers who unwittingly authorise a transaction.

This is a welcome and long-overdue move, and one which other banks should introduce to protect innocent victims of fraud.

Why? Because the distinction between authorised and unauthorised transactions has become too blurred.

Take the story of one of our readers, Joanna Stevens, from earlier this year. Her bank, Natwest, initially refused to refund her after £14,000 was stolen from her account because she had authorised the transaction which ultimately led to her money ending up in the hands of scammers.

But she only authorised the transaction after making numerous attempts to ensure the caller, who claimed to be from the Natwest fraud team, was who he said he was.

She asked the right questions and, in her opinion, got satisfactory responses. Unfortunately, the person on the end of the phone was a fraudster.

Fortunately, Joanna’s story had a happy ending (only after she asked a journalist to help her).

But with criminals stealing £1.2bn through fraud and scams last year, there will be plenty of victims still out of pocket.

TSB has said it won’t refund losses from retrospective claims, only losses incurred on or after 14 April, so the new rules aren’t much use to these people. But they are a much-needed safety blanket for people caught out by fraudsters and their increasingly sophisticated tactics.

That’s not to say consumers should become complacent. Just because fraud victims should get their money back if they’re a TSB customer doesn’t mean they shouldn’t be alert to out-of-the-blue phone calls or text messages or suspicious looking emails.

Joanna Faith is editor of

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
One-year fixed rate bond rates fall

Returns on one-year fixed bonds have fallen for the first time in 2019 to 1.42% in April, 0.05% less than...