15 April 2019

TSB announces UK’s first Fraud Refund Guarantee to protect customers

  • First bank to commit to covering customers against all types of transactional fraud losses.
  • One in four Brits impacted by online fraud in 2018.
  • Part of TSB’s continued fight against fraud through Fraud Prevention, Protecting Customers and Pursuing Criminals.

TSB has today 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 – whether it’s unauthorised transactions on their accounts or customers tricked into authorising payments to fraudsters1.

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 year2. Statistics released by UK Finance show that over £1.2 billion was stolen by criminals committing bank fraud last year.

TSB’s Executive Chairman, Richard Meddings said: “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.

“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 is just one of the many ways the Bank is tackling the issue of fraud head-on. TSB is taking a targeted approach to combat fraud which includes:

  • Prevention through increased fraud education reaching local communities right across the UK;
  • Protecting Customers through multi-million-pound investment in fraud detection measures; and
  • Pursuing Fraudsters by partnering with local police forces to hunt down the criminals that target consumers. TSB’s partnership with local police forces has resulted in multiple arrests and successful prosecutions.

TSB’s Fraud Refund Guarantee will come into effect 14 April 2019 and TSB will be communicating its terms to its customers.

1 TSB customers will be covered for third party fraud loss that occurs on their TSB account
2 Shieldpay

Notes to editors

Further information on the Fraud Refund Guarantee

  • TSB customers will need to contact the bank to report fraud by calling the number on the back of their card or 0800 096 8669. TSB will still investigate the fraud claim, including what happened and how it happened so the Bank can inform the customer and ensure they’re protected for future fraud.
  • TSB will not repay losses due to fraud committed by an individual on their own account. Customers that abuse the Fraud Refund Guarantee, for example by repeatedly ignoring account safety advice, may be excluded from future refunds under the Guarantee.
  • TSB will not refund losses for retrospective claims; the Fraud Refund Guarantee applies to fraud losses incurred on or after Sunday 14 April 2019.
  • The guarantee covers authorised and unauthorised transactions for claims meeting the criteria; for authorised transactions the guarantee is limited to £1 million per claim.
  • The conditions of this Guarantee may be adjusted in future to guard against abuse or to help us prevent and prosecute fraud. We may also make adjustments to reflect guidance or requirements from regulators or enforcement authorities.
  • The fraud guarantee will also cover any new customers joining TSB from 14th April.

Further information on TSB Fraud Education Workshops

TSB is also launching a series of new fraud education workshops which will ensure both customers and non-customers have all the tools and information they need to protect themselves from the latest scams. As well as being hosted across TSB’s network of over 500 branches, the Bank will host flagship workshops in key regions this year including:

  • Birmingham, West Midlands
  • Maestag, South Wales
  • Midsomer Norton, Somerset
  • Stourport on Severn, Worcestershire
  • Kirkaldy, Fife
  • Lincoln, Lincolnshire
  • Romsey, Hampshire
  • Hull, East Yorkshire
  • Preston, Lancashire
  • Bluewater, Kent
  • Horsham, West Sussex

TSB’s Branch Partners and the fraud team will be on hand at the workshops to provide the local community with all the tips they need to stay one step ahead of fraudsters and answer any questions local residents have on fraud.

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