TSB has become the first UK bank to pledge to refund customers who fall victim to any type of fraud. The "fraud refund guarantee" will cover cases where customers are tricked into authorising payments to fraudsters, as well as unauthorised transactions. The move comes as the bank tries to rebuild its image after an IT meltdown last April left 1.9 million customers unable to access their own money. Banks have been under pressure to help tackle the rise in sophisticated fraud. Richard Meddings, acting chief executive of TSB, told Radio 5 live's Wake Up To Money that the move was "about giving peace of mind to our customers and doing the right thing".

He said: "It's a major societal blight. Innocent customers are being tricked." He added that the bank was investing in education for customers and staff about fraud, but also had a message for crooks: "If you come for one of my customers, we will hunt you down." Currently, victims who are tricked into transferring money directly from their account to a fraudster are less likely to be reimbursed, because they approved the payments. Some £354m was lost last year through this type of scam, known as a "push" or "authorised" payment fraud, according to banking trade body UK Finance.

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