Nearly half a million customers hit by Lloyds IT glitch that exposed transaction data, committee says 

Lloyds IT Glitch Exposes Nearly 448,000 Customers’ Data, UK Treasury Says

Details and Impact of the Lloyds Banking Group Data Breach

March 27 (Reuters) - Lloyds Banking Group exposed the personal data of up to 447,936 customers during an IT glitch earlier this month that allowed users to see other customers' transactions, including account details and national insurance numbers, Britain's Treasury Committee said on Friday.

The incident highlights the vulnerability of Britain's digital banking infrastructure, such as apps and websites, as lenders slash physical branch networks to cut costs and shift customers online.

Compensation and Customer Impact

• Compensation Paid

  The bank has paid 139,000 pounds in compensation to 3,625 customers for distress and inconvenience, though no customers have suffered financial loss so far, according to a letter from Lloyds published by the committee.

• Nature and Cause of the Glitch

  Lloyds said a software defect during an overnight update caused the breach, which affected customers at Lloyds, Halifax and Bank of Scotland, with 114,182 people clicking on transactions that revealed other users' personal information.

Regulatory Response

• Treasury Committee's Actions

  Britain's cross-party Treasury Committee had requested further explanation from Lloyds earlier this month over the cause of the glitch that took place on March 12.

• Required Updates from Lloyds

  Lloyds must provide updates to the committee within one month and after six months.

Reporting Credits

(Reporting by Yamini Kalia in Bengaluru; Editing by Sonia Cheema)