Victory for The Sun as TSB becomes first High Street bank to pay back ALL fraud victims – now will others follow suit?
Our Mr Money and Sun Money columns have long campaigned for refunds for victims duped into transferring money to crooks
IN a victory for The Sun, TSB has become the first high street bank that promises to pay back ALL innocent victims of fraud.
Our Mr Money and Sun Money columns have long campaigned for refunds to be paid to people duped by con artists who took money out of their accounts.
Until now, banks have only had to refund customers when the fraud happened without their permission, such as after stealing their credit card.
But crooks in recent years have become increasingly clever at conning people into willingly making payments — for example by convincingly posing as bank staff, police or workers from firms such as BT.
Starting from this week, TSB’s five million account holders are also now covered in these cases.
Scams cost British bank customers almost £1MILLION A DAY in 2018 and the number of victims has doubled in the past 12 months.
Last year alone there were 84,624 cases where people were tricked into putting their funds into a fraudster’s account.
Criminals persuade customers to give access to their accounts.
They can set up fake websites or send hookey emails and invoices to trick people into transferring money direct from their bank to the impostor’s.
This is known as “authorised push-payment” — or APP.
In the past, banks argued that customers who fall for APP scams should have taken more care, and have refused to pay up. But TSB will now refund those customers who become unwitting victims of third-party fraud, unless they have ignored advice and fall for the same scam twice.
For customers who are judged to be vulnerable, this two-strike rule will not apply.
Also, if a person is scammed twice but has been targeted in different ways, TSB has promised to pay out under its fraud refund guarantee.
Richard Meddings, TSB’s executive chairman, said: “Innocent victims should not pay the price of fraud. Fraud refund policies have not kept pace with the scammers.
“You do not have to be frail — or foolish — to fall victim. “Normal, law-abiding, money-saving people have had their life savings wiped out in an instant.”
Unfortunately for anyone scammed in the past, TSB’s fraud refund guarantee cannot be back-dated. It only applies from April 14.
But TSB, which has 550 branches, is working with police forces throughout Britain to help track down the criminals who swindle its customers.
The TSB boss added: “We need a hunting mentality when it comes to tracking down fraudsters.
“The people behind these crimes are cunning and organised.”
TSB refunds for authorised transactions will be capped at £1million. Its customers can report fraudulent activity on their account by calling 0800 096 8669.
I LOST £7.7k ON FAKE USED CAR WEBSITE
WATER engineer Sean Kerlin lost £7,700 when he agreed to buy a second-hand, tVauxhall Insignia car on a respectable motors website.
Sean, 34, contacted the “seller”, a soldier serving in Cyprus, who said he would fly home to Belfast to hand over the car once he received the money.
But dad-of-three Sean was horrified to discover he had been the victim of a hoaxer who had cloned a genuine site. His £7,700 had been diverted to a Lloyds account in London.
Sean, of Cookstown, County Tyrone, said: “The genuine seller lived in Leeds and was unaware his car had been used in a scam.
“My bank, Santander, refused to help, as did the Lloyds branch in London where my money had been sent.
“The police say that on the day my money was stolen at least two other people were scammed.
“This happened four years ago and I still cannot afford to buy another car.
“The refund rules have come too late for me but I will keep on fighting to get my money back.”
More big banks need to step up
CUSTOMERS at other banks who fall victim to fraudsters currently will NOT get a refund.
But from May 28, RBS – which includes NatWest – along with Santander, Barclays, Lloyds, Halifax, Bank of Scotland, HSBC, the Nationwide Building Society and Metro Bank, will be joining a new voluntary code.
Under the move, it is required to refund APP fraud, but it does not go as far as TSB’s pledge.
This group of banking organisations can refuse to pay money back to their customers who ignore scam warnings.
Each of the cases will be judged on whether the banks who have signed up for the code decide if the customer has done enough to protect their cash.
Under the new arrangement, money for refunds is only available until the end of this year. Jenny Ross, the money editor of Which? said: “For years, people have lost life-changing sums of money to increasingly sophisticated scams.
“They have then faced a gruelling battle to get their money back.
“We know that banks are far better placed to spot and prevent scams than their customers.
“TSB has now rightly recognised this and has stepped up to take responsibility for refunding its customers across all types of fraud.
“Yet other high street banks are leaving their customers unprotected.
“All banks must now follow TSB’s lead and ensure that their own customers are not left paying for the cost of this crime.”
BOGUS BUILDERS GOT £12.5k FROM US
MECHANIC Nathan Strefford and his partner Amanda Barnes were duped out of £12,500 by fraudsters who posed as the tradesmen building their new house.
The criminals hacked into Nathan’s email account and found invoices from the genuine workers, which they deleted and replaced with fakes.
Unsuspecting Nathan transferred £12,500 to the accounts on the bogus invoices.
For months, Nathan, 35, and dental nurse Amanda, 34, have been battling Barclays, which blamed the couple for being conned and sending the money.
Nathan, from Worcester, said: “The invoices looked genuine. It’s not like I wasn’t careful.
“Banks should double-check the name on the account as well as the number and sort code on a payment.”
Barclays tracked down the third-party account that Nathan had sent the funds to but found the money had disappeared.
How to get your funds back
PEOPLE with TSB accounts who have been scammed since Sunday will need to contact the bank to report the fraud.
Although it guarantees to refund money to those customers who have been hoodwinked, the bank says it will still investigate the fraud claim.
TSB will want to know exactly what happened and make sure the victims are protected from future cons.
Whichever bank you are with, in the event of being targeted keep any emails or text messages used in the sting. Also keep a record of the account number the fraudster uses to collect your money.
Make sure you speak to the fraud department at the bank and get staff to urgently contact the bank that your money has been sent to.
You must also pass on your case to the national cybercrime reporting service, Action Fraud, which tracks con trends and criminals involved in the scams.
Action Fraud will give you a reference number to give to your bank. If your bank refuses to pay a refund, make an official complaint and, if necessary, take your case to the Financial Ombudsman.
It can be contacted PEOPLE with TSB accounts who have been scammed since Sunday will need to contact the bank to report the fraud.
Although it guarantees to refund money to those customers who have been hoodwinked, the bank says it will still investigate the fraud claim.
TSB will want to know exactly what happened and make sure the victims are protected from future cons.
Whichever bank you are with, in the event of being targeted keep any emails or text messages used in the sting. Also keep a record of the account number the fraudster uses to collect your money.
MOST READ IN MONEY
Make sure you speak to the fraud department at the bank and get staff to urgently contact the bank that your money has been sent to.
You must also pass on your case to the national cybercrime reporting service, Action Fraud, which tracks con trends and criminals involved in the scams.
Action Fraud will give you a reference number to give to your bank. If your bank refuses to pay a refund, make an official complaint and, if necessary, take your case to the Financial Ombudsman.
It can be contacted at or by phone on 0800 023 4567.
TSB will not pay out for customers who try to abuse the guarantee – for example, by committing fraud on their own account or repeatedly ignoring safety advice. or by phone on 0800 023 4567.
CONMAN CLAIMED TO BE FRAUD COP
FORMER secretary Gill Jennings lost £3,100 after being conned by a scammer claiming to be a Scotland Yard detective investigating fraud at her bank.
Gill, 70, from Warwick, was told a member of staff at her branch of Barclays Bank “had gone rogue” and defrauded her account.
She was advised to phone a national emergency number, which she did, and spoke to “Sergeant Cooper”.
But in reality the crooks kept the line open and she was still speaking to the conmen. Gill was asked to help in the investigation by drawing out £7,000 from her account to check if the notes were counterfeit.
In the end she drew out £3,100 from her savings and handed it over to a courier.
Sgt Cooper ordered Jill to tell no one because the case was top secret and one person had already been arrested.
The fake cop promised to hand back the cash in 24 hours.
Gill said: “It was frightening and made me paranoid because they seemed to know so much about me.”
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