TSB launches refund guarantee for fraud victims - MSE News

A slight tangent to the issue here.

Because scams can involve criminals posing as your bank, isn't there a case for implementing something that British Gas did many years ago for gas engineers visiting customers. Customers would ask them for a password (which they had previously set with British Gas). If the engineer didn't know it, they would be refused entry. Surely we could do the same with banking such that when our bank calls us, we can take them through security first and then we can answer their security questions afterwards.

Terry_Towelling wrote: »

A slight tangent to the issue here.

Because scams can involve criminals posing as your bank, isn't there a case for implementing something that British Gas did many years ago for gas engineers visiting customers. Customers would ask them for a password (which they had previously set with British Gas). If the engineer didn't know it, they would be refused entry. Surely we could do the same with banking such that when our bank calls us, we can take them through security first and then we can answer their security questions afterwards.

It's a nice idea, but it requires the scam victims to know enough to challenge the scammers. If they could be educated to do that, they could be educated never to give away information that could be used to authorise a transaction, or transfer money to a 'safe' account, depending on the particular flavour of fraud.

Some banks do allow you to set up a phone password the bank must give you when calling you. I think I'd still insist on calling them back after ensuring the line was cleared down.

JuicyJesus wrote: »

Problem with that is, before they've taken you through security they don't know who you are and as far as they're concerned they could be giving "your" password to a total random.

There's no need for it to be done prior to clearing security, which usually involves giving away very little.

verybigchris wrote: »

If a TSB customer withdraws £200 from an ATM and hands it to a fraudster are they covered by the guarantee? I can't see anything in their info which suggests they aren't.

"Obviously, we won’t refund customers if they are involved in committing the fraud."

JuicyJesus wrote: »

Problem with that is, before they've taken you through security they don't know who you are and as far as they're concerned they could be giving "your" password to a total random.

Fair point - back to the drawing board.:)

That said, it is not the 'total random' that we have to guard against; it is the person with criminal intent who happens to be on the genuine account holder's landline or in possession of their mobile phone at the time of an incoming call from their bank - which I accept could happen.

If that criminal gets hold of your password they could then pose as your bank, call you up and pass your security. The fact that they could pass your security wouldn't make any given fraud more likely than if your security step didn't exist, but it might make you drop your guard completely and share your private details more openly - and that would be a very bad thing.