Lloyds Compensates Customers After IT Data Exposure Glitch

Lloyds Banking Group has compensated thousands of customers after an IT glitch exposed personal financial data to nearly half a million users across its apps. The incident, which occurred on March 12, affected 447,936 account holders at Lloyds, Halifax, and Bank of Scotland, allowing some to view transactions and sensitive details belonging to others.

The glitch stemmed from a software defect during an overnight IT update, according to a letter from the bank's consumer relations director, Jasjyot Singh, sent to Parliament's Treasury Select Committee. As a result, customers briefly saw transactions that were not their own. Of those impacted, 114,182 users clicked on the visible transactions, potentially accessing confidential information such as account details, National Insurance numbers, and payment references. The bank noted that data from individuals outside the Lloyds group was also exposed in some cases.

Lloyds identified and resolved the issue quickly, contacting affected customers shortly afterward. No financial losses have been reported as a direct result, the bank stated. To address the distress and inconvenience caused, Lloyds has paid out £139,000 in goodwill...