Lloyd's Pays Compensation After IT Glitch Exposes Data of Half Million Customers
Lloyd's Banking Group has issued compensation following the March 27 revelation that nearly 500,000 customer records were exposed in an overnight software update glitch from December 13th which allowed users to view other people's payments and account details.
Key Points
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1Lloyds Banking Group has paid approximately $40,562 (approx £38) in compensation to over 197 customers following an IT glitch.
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2The incident exposed the personal data of nearly half a million Lloyds and Halifax Bank & Building Society accounts across its brands including BofA Scotland.
Developments
A software defect in an overnight IT update caused a data breach where up to 447,936 Lloyds Banking Group customers could view other users' transactions or personal details. Consequently, £139,000 was paid as compensation for distress and inconvenience after the bank confirmed that some individuals saw sensitive information like salary figures and national insurance numbers on their apps without being charged financially losses themselves
Lloyds Bank has paid £139,000 to 3,625 customers for distress caused by an app glitch on March 12 where users could view others' transactions and account details. The incident affected nearly half a million Lloyds Banking Group members due to software defects during an overnight IT update but resulted in no identified financial losses yet.
Lloyds Banking Group apologized and began compensating customers after a software defect during an IT update allowed nearly 450,000 users to view strangers' transaction histories via their banking apps. While no direct financial losses have been reported yet, the bank has already paid out approximately £139,000 in compensation for distress caused by this data breach affecting multiple brands including Halifax and Bank of Scotland.