The Financial Conduct Authority (FCA) has asked Lloyds Banking Group about the problem of fraud which affects cancelled contactless cards, has learned - in the first sign of the regulator taking action since we revealed the contactless card security flaw.

In September a investigation found some debit and credit cards can be used by crooks to make contactless payments months after they've been cancelled. One MoneySaver found his Halifax cards were used to make a series of fraudulent transactions some eight months later.

In the wake of our investigation, MSE has raised the issue of post-cancellation fraud with the FCA.

Lloyds Banking Group, which owns Lloyds, Halifax and Bank of Scotland, is now understood to have responded to a request for information from the FCA, though this week the regulator declined to comment on whether it's looking into the issue or plans to take any action.

We also asked Nationwide, RBS/NatWest and Post Office Money if they'd responded to an FCA call for information on this issue. Post Office Money said it hadn't, while Nationwide and RBS/Natwest have yet to comment.

Lloyds Banking Group told MSE in September that it had put its contactless card security procedures under review and says it has now updated its guidance for customers reporting lost or stolen cards.

A spokesperson for the group says that those customers will now be instructed to "monitor their statements and contact us if there are any transactions that they do not recognise".

The spokesperson adds: "Since September, we have made improvements to the information that we provide to customers when they report their cards lost or stolen through all of our channels. 

"Our approach and procedures to tackle contactless post-cancellation fraud remain under review as part of our constant work to improve safety measures."