20,000 customers lose money from Tesco bank

Tesco Bank has halted online payments for current account customers after money was taken from 20,000 accounts, reports BBC.
The bank’s chief executive Benny Higgins told the BBC he was “very hopeful” customers would be refunded within 24 hours.
About 40,000 accounts saw suspicious transactions over the weekend, of which half had money taken, he said.
Customers will still be able to use their cards for cash withdrawals, chip and pin payments, and bill payments.
They can also use online banking, but cannot make online transactions until the situation is back under control, Mr Higgins told the BBC’s Today programme.
Earlier, the bank confirmed some accounts “have been subject to online criminal activity, in some cases resulting in money being withdrawn fraudulently”.
Mr Higgins also apologised for the “worry and inconvenience” that custo-mers have faced.
Customer updates
Over the weekend, custo-mers complained about money being withdrawn without permission, cards being blocked and long delays to get through to the bank on the phone.
“We continue to work with the authorities and regulators to address the fraud and will keep our customers informed through regular updates on our website, Twitter, and direct communication,” Mr Higgins said.
Shares in the Tesco group have fallen more than 2% in early trading.
Image caption Alan Baxter says £600 was removed from his account 
Alan Baxter from Berwick-upon-Tweed said he had lost £600, leaving him with just £21.88 in the bank.
He said: “Tesco said they couldn’t offer me emergency funds but would offer £25 as a goodwill gesture.
“I’ve got food and petrol to pay for. I have a delivery of coal coming tomorrow for our coal-fired heater and I won’t be able to pay.”
Kevin Smith, from Blackpool, said he had lost £500 from one account and £20 from another.
He said: “I was just about to go to bed last night when I received a text message from Tesco saying there had been fraud on my account. So of course you panic.”
‘Money has vanished’
Other customers complai-ned on Tesco Bank’s website and through social media about long delays when calling the company’s customer service line to find out if their account was affected.
“Appalling service here. Woken at 4am to say contact urgently. Spent over three hours on hold. No answer,” one wrote.
Another wrote: “Been waiting 40 mins to get through to @TescoBankNews. I hope my money is safe...”
A third said: “My weekend is not going very well, thanks to Tesco Bank. Money has vanished from my account and you don’t even answer the phone.”
Robert Schifreen, editor of the computer safety website Security Smart, said Tesco Bank must tell people what happened and how fraudsters obtained customers’ bank details.
“It could be, for example, that people have been attaching skimming devices, card readers and cameras specifically to Tesco’s cash point machines, so that they’ve been capturing people’s accounts there,” he told the BBC.
“It could be somebody who works at Tesco Bank who’s had access to the database. It could be somebody else, who Tesco have passed information to, and that information has been hacked.”
Refund rules
The Financial Conduct Authority says banks must refund unauthorised payments immediately, unless they have evidence that the customer was at fault or the payment was more than 13 months ago.
Banks are also required to refund any charges or interest added to your account as a result of the fraudulent payments.
Tesco Bank has been owned by Tesco plc since 2008, after starting as a joint venture with Royal Bank of Scotland.
The bank has more than seven million customer accounts and 4,000 staff, based in Edinburgh, Glasgow and Newcastle.

20,000 customers lose money from Tesco bank

Tesco Bank has halted online payments for current account customers after money was taken from 20,000 accounts, reports BBC. The banks chief executive Benny Higgins told the BBC he was very hopeful customers would be refunded within 24 hours. About 40,000 accounts saw suspicious transactions over the weekend, ofwhich half had money taken, he said. Customers will still be able to use their cards for cash withdrawals, chip and pin payments, and bill payments. They can also use online banking, but cannot make online transactions until the situation is back under control, Mr Higgins told the BBCs Today programme. Earlier, the bank confirmed some accounts have been subject to online criminal activity, in some cases resulting in money being withdrawn fraudulently. Mr Higgins also apologised for the worry and inconvenience that custo-mers have faced. Customer updates Over the weekend, custo-mers complained about money being withdrawn without permission, cards being blocked and long delays to get through to the bank on the phone. We continue to work with the authorities and regulators to address the fraud and will keep our customers informed through regular updates on our website, Twitter, and direct communication, Mr Higgins said. Shares in the Tesco group have fallen more than 2% in early trading. Image caption Alan Baxter says 600 was removed from his account Alan Baxter from Berwick-upon-Tweed said he had lost 600, leaving him with just 21.88 in the bank. He said: Tesco said they couldnt offer me emergency funds but would offer 25 as a goodwill gesture. Ive got food and petrol to pay for. I have a delivery of coal coming tomorrow for our coal-fired heater and I wont be able to pay. Kevin Smith, from Blackpool, said he had lost 500 from one account and 20 from another. He said: I was just about to go to bed last nightwhen I received a text message from Tesco saying there had been fraud on my account. So of courseyou panic. Money has vanished Other customers complai-ned on Tesco Banks website and through social media about long delays when calling the companys customer service line to find out if their account was affected. Appalling service here. Woken at 4am to say contact urgently. Spent over three hours on hold. No answer, one wrote. Another wrote: Been waiting 40 mins to get through to @TescoBankNews. I hope my money is safe... A third said: My weekend is not going very well, thanks to Tesco Bank. Money has vanished from my account and you dont even answer the phone. Robert Schifreen, editor of the computer safety website Security Smart, said Tesco Bank must tell people what happened and how fraudsters obtained customers bank details. It could be, for example, that people have been attaching skimming devices, card readers and cameras specifically to Tescos cash point machines, so that theyve been capturing peoples accounts there, he told the BBC. It could be somebody who works at Tesco Bank whos had access to the database. It could be somebody else, who Tesco have passed information to, and that information has been hacked. Refund rules The Financial Conduct Authority says banksmust refund unauthorised payments immediately, unless they have evidence that the customer wasat fault or the paymentwas more than 13 months ago. Banks are also required to refund any charges or interest added to your account as a result of the fraudulent payments. Tesco Bank has been owned by Tesco plc since 2008, after starting as a joint venture with Royal Bank of Scotland. The bank has more than seven million customer accounts and 4,000 staff, based in Edinburgh, Glasgow and Newcastle.