Banks: Fraud

Mr. Vaizey
To ask the Chancellor of the Exchequer what mechanisms are in place to compensate people for financial loss incurred as a result of fraud in relation to retail banks.

Ian Pearson
The Financial Services Compensation Scheme will compensate persons who are eligible to claim under its rules in the event that a UK authorised bank is unable, or likely to be unable, to pay claims against it, including where the bank is unable to pay claims as a result of fraud.