The ‘First Alert’ technology has been trialled on credit card customers since 2005, successfully combating a number of fraud cases, according to the bank.

A customer receiving an alert telephone call will hear a recorded message asking if they recognise the transaction which has been conducted.

If they spy fraudulent behaviour, the customers can ask to be connected to a Lloyds TSB call handler who will help them freeze the account and organise a refund.

The new system “will enable us to spot fraud more quickly so we can put things right for customers faster than ever before”, Gerrard Schmid, director of transaction banking, commented.

Apacs recently revealed that cases of card not present fraud, which involves unauthorised persons using cards over the phone, internet or for mail order, increased by 16 per cent to £212.6 million in 2006.

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