Lloyds TSB puts card fraud on alert

Lloyds TSB has become the first UK bank to introduce automated telephone alerts to let its customers know that there may be suspicious transactions on their current accounts. The ‘First Alert’ technology will work with the bank’s fraud detection systems to make an automatic call if fraud is suspected on the account. The system has been used for the bank’s credit card customers since 2005 and is now being extended for debit card customers.

When customers receive a phone cal, they will be asked whether they recognise the transaction. If fraud is suspected, the customer will be able to speak to a bank representative to help them to freeze the account and organise a refund. If the customers recognise the transaction as genuine they can confirm this and end the call.

The decision to extend this service comes as APACS, the UK payments service, has revealed an increase in ‘card not present’ fraud. There has been a 16 per cent rise in fraud where cards are used over the phone, on the internet or for mail order transactions. Fraud due to card cloning has also risen by three per cent. The new system will cut down on both card not present fraud and cloning fraud for the bank’s customers.

Gerrard Schmid, director of transaction banking, Lloyds TSB, said: ‘First Alert will enable us to spot fraud more quickly so we can put things right for customers faster than ever before. The system proved a huge success on credit cards and by extending it to our debit card customers we’re planning to crack down further on card fraud. We’re constantly developing and launching new technologies to fight fraud on every front, and the expansion of our ‘First Alert’ system to debit cards, will be a real asset.’