Lloyds Banking Group has admitted that a software update to its mobile banking apps on 12 March exposed the personal data of nearly 500,000 customers. The glitch, which affected the Lloyds, Halifax and Bank of Scotland apps, potentially allowed users to view others' payments, account details and national insurance numbers.
In a letter published by the Treasury select committee, the bank said up to 447,936 customers were potentially able to see private information, with 114,182 people clicking into transactions that revealed sensitive data. Even non-Lloyds customers may have had their transaction details exposed.
Lloyds reported the incident to the Financial Conduct Authority on the same day and notified the Information Commissioner's Office within 72 hours. The bank has so far paid £139,000 in compensation to 3,625 customers for distress, but said no financial losses have occurred.
Jasjyot Singh, Lloyds' chief executive of consumer relationships, said there is no evidence of misuse, but urged customers to delete any recorded information. The bank will continue to monitor for fraud.
The incident raises concerns about customer protections as banks push more users towards digital banking. Meg Hillier, Treasury committee chair, noted the trade-off between convenience and reliance on technology that can suffer errors.
