Almost half a million Lloyds customers had personal data exposed in IT glitch
Lloyds Banking Group exposed the personal data of nearly 500,000 customers in an IT glitch that left people’s payments, account details and national insurance numbers visible to other users, a committee of MPs has revealed.A letter from Lloyds, published by MPs on the Treasury select committee on Friday, blamed the glitch on a software defect introduced during an IT update to its Lloyds, Halifax and Bank of Scotland mobile banking apps overnight into 12 March.The bank explained that customers would have had to be looking at their app within “small fractions of a second” of other users in order to access their details.However, it still meant up to 447,936 customers were potentially able to view private information of other users, with Lloyds adding that about 114,182 people ended up clicking into transactions that revealed account details, national insurance numbers or payment references.Even people who were not Lloyds Banking Group customers may have had their transaction details exposed, the bank said.
The bank said it reported itself to the City regulator, the Financial Conduct Authority, on the morning of 12 March, and notified the Information Commissioner’s Office within the 72 hours as required.Jasjyot Singh, the Lloyds chief executive of consumer relationships, said the bank was now asking any customers who may have recorded, taken screenshots or posted information about other users to delete the information.“There is currently no evidence of misuse or malicious activity as a result of the incident through our fraud and cyber monitoring process,” he said.However, he assured the bank would “continue to monitor [potential fraud] closely”.Lloyds has so far paid £139,000 to compensate 3,625 customers for distress and inconvenience.
However, it said no customers had suffered any financial losses as a result of the IT failure.The IT glitch is the latest to throw up questions about customer protections at a time when banks are continuing to close branches and push more users into digital banking and payments.It comes as long-established UK financial institutions such as Lloyds rush to compete with the boom in online-only banks ranging from digital challengers such as Monzo and Revolut to the British arms of foreign rivals, including JP Morgan’s Chase UK.The number of UK bank branches fell sharply from roughly 10,565 to 6,870 in the decade to 2024, according to the Office for National Statistics.Commenting on Lloyds’ letter, Meg Hillier, the Treasury committee chair and Labour MP, said: “Modern banking methods mean we can now perform a variety of tasks on our phones in a matter of seconds, and almost anywhere.
What this incident brings into focus is the fact that there is a trade-off,By moving more interactions with our bank online, we place our faith in technology which can suffer unpredictable errors,It’s critical that consumers understand this,”Singh said: “Our priority now is to complete our full analysis, continue to engage with our customers, and ensure that we address our responsibilities towards them in full,We will also seek to learn any lessons and update our processes as a result of this incident.
”Lloyds will provide further updates to the committee about the fallout from the IT glitch in April and September.
Human rights groups cheer ‘watershed’ verdict in social media addiction trial
The verdict in a landmark social media trial that Meta and YouTube deliberately designed addictive products has sparked calls for reform across borders. International human rights and tech freedom groups issued statements after the decision, praising jurors for holding social media companies accountable for harms to children and urging tech giants to change their design features to ensure children are safe.Amnesty International said in a statement on Thursday that “this court decision is clear: these platforms are unsafe by design and meaningful change is urgently needed”.The day prior, a Los Angeles jury found both Meta and YouTube liable for intentionally creating platforms that hooked a young user and led to her being harmed. The six-week trial was one of more than 20 “bellwether” trials that are expected to go to court in the next few years
Brussels opens investigation into Snapchat amid concern over children’s safety
Brussels has opened an investigation into Snapchat over concerns the social messaging app is exposing children to grooming, sexual exploitation and other criminality.In a separate decision on Thursday, the European Commission also said four pornographic websites were failing to prevent minors seeing adult content, harming young people’s mental health and fuelling negative gender attitudes.The investigations into five tech companies were brought under the EU’s Digital Services Act (DSA), which has come under fire from Donald Trump since coming into force two years ago. Aiming to protect European society from a wide range of internet harms, the DSA includes child safety provisions to combat cyberbullying, exposure to adult content and illegal products.The announcements came after a landmark ruling in a Los Angeles court found that two social media companies, Meta and YouTube, had deliberately created addictive products that harmed a young user
Google warns quantum computers could hack encrypted systems by 2029
Banks, governments and technology providers need to be prepared for quantum computer hackers capable of breaking most existing encryption systems by 2029, Google has warned.The tech company said in a blogpost that quantum computers would pose a “significant threat to current cryptographic standards” before the end of the decade and urged other companies to follow its lead.The company, owned by Alphabet, said: “The encryption currently used to keep your information confidential and secure could easily be broken by a large-scale quantum computer in coming years.”As it stands, quantum computers – which can rapidly carry out complex tasks – are a nascent technology with great potential and significant obstacles to being widely usable.Google, Microsoft and universities across the UK and the US are in the midst of building systems that harness the physics of quantum mechanics to perform extremely sophisticated mathematical calculations
Starmer vows to tackle social media’s ‘addictive features’ to protect children
Keir Starmer has said he will tackle “addictive features” in social media amid increasing signs the UK government is preparing to crack down on risks to children after a US court verdict that held Meta and YouTube responsible for harms caused by designing addictive technology.The prime minister said the verdict in a California court signalled a rising public expectation for more aggressive regulation and said: “I’m absolutely clear that we need to go further.”“The status quo isn’t good enough,” he said. “We need to do more to protect children. That’s why we’re consulting about issues such as banning social media for under-16s
Creator of AI actor Tilly Norwood says she received death threats over project
The creator of the AI actor Tilly Norwood has said she received death threats after a global backlash against the project, and said she developed it to “provoke thoughts and discussion” about the impact of AI in the entertainment world.Eline van der Velden caused anger and panic in Hollywood and beyond last year after she said talent agents had been interested in signing her creation. Prominent actors and acting unions immediately condemned the idea.In an interview with the Guardian, Van der Velden said she had been prepared for a backlash against the provocative idea of AI performers. However, she said she was “quite shocked by the vitriol” that followed
Charity Commission warns Alan Turing Institute of its legal duties after complaints
The board of the UK’s leading AI research institute has been reminded of its legal duties in areas such as financial oversight and managing organisational change by the charity watchdog after a whistleblower complaint.The Charity Commission issued formal regulatory advice and guidance to trustees at the Alan Turing Institute (ATI), the organisation’s board, after it was contacted by a group of staff with a list of concerns.The commission told ATI it was closing the case and was not launching a statutory inquiry – a formal investigation. However, the watchdog said if there was evidence of trustees ignoring its advice, it could resume contact with the institute.The commission launched a compliance case related to ATI after receiving the complaint last summer
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