TSB has announced it is to reimburse customers who fall victim to scams.
Richard Meddings, the bank’s executive chairman, said it was “the right thing to do”.
Its pledge to offer a fraud refund guarantee goes further than not only any existing policies on fraud, but also the industry’s Code of Conduct on Refunds, which comes into force at the end of next month. Industry insiders said the move would pile pressure on other banks to follow suit.
Last year, £1.2bn was stolen through bank transfer scams, according to figures from UK Finance.