Sunday 14 April 2019 6:52 pm

TSB launches fraud guarantee for customers after last year’s IT crisis

TSB will tomorrow announce a fraud refund guarantee that means the bank’s 5.2m customers will be covered if they are an innocent victim of fraud.

The pledge follows an IT meltdown at TSB last year that saw fraud rise to 70 times its normal level and more than 1,300 customers losing money.

Read more: TSB to pay former boss £800,000 despite bonus ban

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 IT outage began in April after its Spanish owner Sabadell ​attempted to migrate customers from former owner Lloyds Banking Group’s systems onto its own.

Read more: TSB falls to £105m loss after IT disaster

The IT chaos led to the exit of TSB’s chief executive Paul Pester in September after he was heavily criticised by MPs for his reaction to the crisis.