Lloyds Bank has issued guidance on its password protocols, confirming that it does not store customer passwords in plain text. The clarification follows a customer query about why the app enforces a maximum password length.
Customer query on password limits
An account holder contacted Lloyds with a question about the app, asking why there is a maximum password length when setting a password. The customer queried: "I assume all passwords are hashed, so are a fixed hash length when stored, so, what's the logic behind an upper bound on the password? Unless you are storing them plain text?"
Hashed passwords are those that an online service provider converts into a string of characters using a specific formula, designed to protect the password if fraudsters gain access to databases.
Bank's response and security measures
In response, Lloyds said: "Password requirements are set as part of our security measures and may include character limits. We don't store passwords in plain text."
The update comes as some Lloyds Bank customers have recently experienced issues with the app. Thousands had problems logging in and accessing their money on Wednesday, August 26.
Recent app disruptions
A Lloyds Banking Group spokesperson said: "Our apps are now back up and running. We're aware some customers experienced difficulties accessing them for a short period earlier today, and we worked quickly to restore services. We apologise for any inconvenience."
The problem also affected Halifax app users, which is part of the same Lloyds Banking Group, as is the Bank of Scotland. A similar glitch occurred on August 18. In March, some account holders could briefly see other people's statements, including payments and transactions.
For customers looking to build their savings, the Lloyds website offers a calculator tool. Users provide details on how much they have saved already, how much they can afford to put aside, and how long they will be saving for. The tool then shows how much they will have built in deposits over that period, though it does not include interest earnings.
