Data released by NatWest shows 95 percent of retail banking customers have never paid someone else more than £5,000.
The bank said it is automatically reducing the limit to £5,000 for all retail customers who have never made a transfer for more than that amount.
Customers will be able to increase or decrease this amount when they want, NatWest confirmed.
Jonathan Leslie, Fraud Prevention Manager said: “For the first time customers are being given the ability to set a payment limit most suitable to their needs which in turn will help to protect them from the life changing impacts of fraud and scams.”
The bank is also offering customers free Malwarebytes software to help with added online protection.
In an attempt to reduce the risk of people falling victim to scams, the bank is reminding Britons of some top tips which could help keep them safe from fraud.
“NatWest will never ask you to increase your payment limit and customers should never do this if requested,” they said.
“Try to shop online with websites that you know and trust using your Debit or Credit Card.
“If you see a deal online that looks too good to be true from a website you’ve never heard of, do your homework; check what the merchants refund policy is, do they have a landline to call if there is a problem, are there any negative reviews about them?
“If you have doubts, don’t make the purchase.”
Spotting signs of a potential scam is important, and NatWest warned there could be an obvious signal something isn’t right.
The bank said: “If an online seller asks you to send money direct from your bank account to theirs, this is probably a scam.
“If they fail to deliver the goods you will lose your money.
“When it comes to buying online, use your MasterCard or VISA to pay, or carefully follow the scam advice on auction sites such as eBay and Gumtree will help you avoid falling victim.”
When it comes to giveaways, many can be keen to try their luck at being picked.
However, sharing personal and financial information when entering could potentially mean it ends up in the wrong hands, the bank warned.
“Don’t give away your personal and bank details too easily,” said NatWest.
“Criminals use online competitions or offers of free shopping vouchers as a way of harvesting information from their next victims.”
Being cautious when it comes to communication could also be key.
“Be sceptical of unsolicited phone calls, texts or emails asking for personal or bank details,” they said.
“The bank will never ask for a full PIN or password, card reader codes, or ask you to move money from your account.”
Protecting personal details via a hard to guess, and unique, password is also important.
The bank warned: “Do not recycle passwords and always use a unique password for your bank accounts and your email account.”