Lloyds Banking Group has disclosed that an additional 80,000 customers may have been impacted by a major technology glitch last month, potentially increasing the total number of affected customers to over half a million. The banking giant, which also owns Halifax and Bank of Scotland, has already paid out more than £260,000 in compensation and goodwill payments following the incident.
Scope of the Glitch
On 12 March, a software defect during an overnight IT update caused some customers to see other users' transactions on their accounts. Initially, Lloyds reported that around 450,000 customers were affected. However, in a follow-up letter to the Treasury Committee, the bank revealed that an additional 80,508 joint account holders may have had their transaction details viewed, even though they did not log into the banking app during the incident.
Customer Notification and Support
Jasjyot Singh, CEO of consumer relationships at Lloyds, stated: "We also issued an alert on the app home screen to these 80,508 joint account holders, with a small number of exceptions based on particular customer circumstances. In notifying these customers, our focus has been on providing reassurance and support."
Compensation and Goodwill Payments
Since 24 March, Lloyds has paid out £201,000 to 5,250 people and an additional £62,000 in goodwill payments to 1,625 individuals. This averages approximately £38 per customer, but the bank emphasised that payments are made on a case-by-case basis under its existing "distress and inconvenience" policy, rather than a fixed sum.
Fraud and Financial Loss
Lloyds stressed to the Treasury Committee that it had not observed an increase in daily fraud levels against those affected since the glitch. Furthermore, the bank stated it has not identified any customers who suffered financial loss as a direct result of the incident, and therefore has not made compensation payments on that basis. However, Mr. Singh noted: "Separately, it is our existing practice that we may make goodwill payments for distress and inconvenience in individual cases, for example, where there has been a direct impact on an individual."
Regulatory and Expert Advice
The personal data of individuals who are not Lloyds group customers was also visible during the glitch, but the bank reported no complaints from customers of other banks. Finance experts advise anyone affected to contact their bank promptly, providing evidence to potentially expedite their payout. Customers dissatisfied with the offered amount can escalate their case to the Financial Ombudsman Service for an independent review.
