Lloyds Bank Insurance
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Day to day banking impossible because of over zealous fraud measures
Lloyds Bank has introduced a new fraud prevention policy, but unfortunately, they failed to communicate it clearly to their existing customers. I recently made several large transactions to companies I’ve worked with before—amounts in the thousands—which went through without any issues. However, when I tried to make a smaller transaction of under £500, my card was unexpectedly declined and frozen. Each transaction involved multiple layers of verification: logging into online banking, transferring online, confirming via the banking app, receiving and entering a text message code, and entering my banking password. You’d think this would be sufficient to prove the legitimacy of my activity—but apparently not. When my card was blocked, I had to contact their fraud department. I then spent over 20 minutes going through fraud checks, during which they asked me to click on a link they sent via text to upload a photo of my driving licence or passport. This request feels contradictory to their usual advice, which warns customers to *never* click on links or provide personal information via such methods. I understand the importance of fraud prevention, and I appreciate the efforts to protect customers. However, when basic day-to-day banking becomes this cumbersome and when I’m asked to share sensitive information (like my driving licence or passport details) in a way that goes against their own fraud prevention advice, it becomes frustrating and contradictory. Lloyds needs to rethink how they implement and communicate these policies to avoid undermining customer trust and actually think about the service element instead of letting an over-zealous security lead run the bank. Lloyds' handling of this situation has pushed me to begin the process of closing my accounts in favor of two other well-established banks. These banks not only have a stronger track record of managing risk and fraud but also deliver a far superior level of customer service. Adding to the frustration, when I declined to upload my sensitive personal details via a questionable link, the only alternative offered was to visit a branch. However, with so many branches closed or operating under limited hours, this is hardly a practical solution. I was not told in the link how my data was going to be processed - in the UK? On a server abroad? There was no option not to upload it, not even through their app! It’s disappointing to see a bank prioritising rigid processes over customer convenience, especially when there are better options out there that balance security and service more effectively.