TSB Bank launches UK’s first refund solution to cover all types of transaction fraud

TSB Bank has revealed a Fraud Refund Guarantee which protect customers fallen victim to fraudulent activity.

As part of this new service, customers will be protected from unauthorised transactions on their accounts or customers being tricked into authorising payments to fraudsters. Customers are also covered for third-party fraud loss which occurs on their TSB account.

Currently, consumers are only refunded for fraud losses in limited circumstances; however, TSB customers will now be refunded any loss they’ve suffered from their account as a result of third-party fraud.

TSB is the first UK bank to cover customers against all types of transactional fraud. The service will come into effect on 14 April 2014.

A report from UK Finance last year found that £1.2bn was stolen by criminals through bank fraud. TSB taking a number of steps to try and lower this.

It is looking to increase fraud education within local communities across the UK, improve fraud detection measures, and partnering with local police forces to hunt down criminals – these partnerships have already led to some arrests and prosecutions, it said.

TSB 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.”

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