question about compensation for fraud on savings accounts

LGG_2

are there any set rules about what happens if u have money stolen from your account say by internet fraud on an online account? can the banks have their own rules or is there a fund set up like with credit cards etc. question being as i thought i was having issues with my online security. therefore i rang my bank and they froze my online banking i than rang tesco who i have an online savings account with and asked them to do the same. after they threatened to to not only freeze my account but stop me from taking any money out of it at all until i re registared for online banking. (i told them where to go in so many words) they came back and said yes we will freeze you online banking but now u have told us this if any money goes missing via telephone banking we wont have any liability for it.one question being whats the point in a card reader then if someone can take your money. are they allowed to do thatand not accept liability and is there no compensention fund for customers? because of what they said ive pretty much emptied my account into a high street branch just to be on the safe side.

ed123_2

...you should read the terms and conditions of each account. Generally if you've lost or had cards stolen you should be ok. However if you wrote down the pin numbers etc or allowed other access/information you could be liable. Also some conditions state that you should have updated virus/firewall programmes installed or you could again be liable.
Re compensation funds there is a limit of £50,000 for each bank/bsoc registered with the FSA. (be careful re groups which may only have one banking licence).

gozomark

LGG wrote: »

after they threatened to to not only freeze my account but stop me from taking any money out of it at all until i re registared for online banking. .

if its frozen, its frozen - isn't that what you wanted ?

you told them there was potential fraud on the account, so they froze access - seems very sensible to me

LGG_2

i didnt want them to stop me from taking money out lol just wanted the online access to be stopped. after it took 3 months to access the account when i first set it up i hardly want to have my account frozen for months on end. are they gonna pay my bills? when they first said this i said well ill just close the account totally and take all the money out now but the woman was like no u cant do that either, mind u it turns out that as normal they didnt know what they were talking about anyway as she rang me back after talking to her supervisor. good ole tesco.

gozomark

LGG wrote: »

i didnt want them to stop me from taking money out lol just wanted the online access to be stopped.

but how do they know its you ?

LGG_2

because theres only one account linked to the accounta nd its mine so no point anyone else just asking to take x amount of money out. and because have having to wait years for a crad reader id presume they wouldnt just let anyone on the phone add another account without asking for more details like D.O.B address etc

gozomark

you've told them theres been Internet fraud on your account, so they suspend Internet withdrawals on your account - seems sensible to me

ukmike

and because have having to wait years for a crad reader

Years?? i don't think so.(what's a crad reader btw???)