TSB’s computer meltdown woes, which saw nearly two million customers locked out of their accounts, show no sign of abating as fraud reports continue to rise and the bank tells some companies that customers whose direct debit payments had failed, were dead.

Action Fraud said since the start of this month there had been more than 320 reports of TSB “smishing” (fake text messages) and “phishing” (emails) fraud – an increase of 970% on the previous month. Over the same period reports of cybercrime mentioning TSB had risen 112%.

Customers have also reported a fraud where a victim’s mobile number is ported to a fraudster’s SIM card and used to access the victim’s accounts. Some customers have also seen direct debits cancelled, only to find the bank had told payee firms they had died, according to Money Saving Expert.

One customer, David Buttery, said four organisations, including his energy providers, were told he was deceased: “I’ve had to phone every company and tell them I’m not dead and give them my new bank details, which I feel I shouldn’t have to do, and they are all saying it’s what TSB had told them.”

Robert Catterall, another TSB customer, said: “I have just had a letter from my council today saying that my house has now got a new owner/occupier. I rang them and they said that TSB had told them that I was deceased.”

Tales of this latest TSB IT fiasco come after The National told how Charlie Sweeney, from Largs, North Ayrshire, decided to camp inside his local branch after he lost £2500 to hackers and could not raise anyone in the banks fraud unit.

The 53-year-old supermarket worker sat on the floor in the bank holding a sign reading: “TSB do not care about their customers.”

His account was soon restored thanks to his persistence and his daughter’s Facebook campaign. His missing cash was also refunded, but he said: “My concern is how many other people are in this position, people unable to feed their children or pay bills – this took three days of my life when they wouldn’t even answer calls from their internal numbers.”

TSB said the latest instances had arisen when customers tried to switch their accounts from the bank.

“We are aware there was an issue with a small number of our customers switching from or closing their account with TSB, which resulted in an error in the cancellation or transfer of some of their direct debits,” they said.

“We are deeply sorry for any distress caused. We are working to rectify this issue and we are really sorry for the inconvenience caused.”

A committee of MPs, meanwhile, has said Royal Bank of Scotland (RBS) had failed to fully appreciate the “damage” that the axing of dozens of its branches will cause.

The Scottish Affairs Committee urged the taxpayer-owned lender to halt plans to shut 52 branches across Scotland, describing the move as a “devastating blow” to the communities involved.

Committee chair Pete Wishart urged the UK Government to use any influence as majority shareholder to pressure RBS to reconsider.

“The UK Government has an obligation to represent the interests of the citizens and communities in Scotland that will be harmed by this swathe of bank closures,” said Wishart. “They own 70% of the shares in this company and should use any influence they have to try and have this decision reversed.”