Tesco Bank has frozen online transactions after customers were affected by fraudulent activity and pledged to refund those who had money taken from their accounts over the weekend.

Benny Higgins, chief executive of the supermarket chain’s banking arm, said the decision to stop online transactions was an attempt to protect customers. He said 40,000 accounts had been affected, half of which had had money withdrawn in what he described as “online criminal activity”.

“We apologise for the worry and inconvenience that this has caused for customers, and can only stress that we are taking every step to protect our customers’ accounts. That is why, as a precautionary measure, we have taken the decision today to temporarily stop online transactions from current accounts. This will only affect current account customers,” said Higgins.

Higgins said: “While online transactions will not be available, current account customers will still be able to use their cards for cash withdrawals, chip and pin payments, and all existing bill payments and direct debits will continue as normal. We are working hard to resume normal service on current accounts as soon as possible.”

Guardian story continues here