Lloyds IT Glitch Exposed Data of Nearly 500,000 Banking Customers

A software defect at Lloyds Banking Group exposed the personal data of up to 447,936 customers after an IT glitch allowed users to see other customers' transactions and account information. The incident, which occurred on 12 March during an overnight system update, affected customers using mobile banking apps across Lloyds, Halifax and Bank of Scotland. The error meant that some users could briefly view transactions belonging to others, including account details, payment references and national insurance numbers.

Around 114,182 customers clicked on transactions that displayed other users' personal information, with the bank saying data would only appear if users accessed their apps within fractions of a second of others. Lloyds has paid £139,000 ($183,000) in compensation to 3,625 customers for distress and inconvenience, and there was no evidence of financial loss or fraud linked to the glitch, though monitoring would continue.

The incident has heightened concerns about digital banking reliability as branches close and regulators monitor the situation, according to the UK's Financial Conduct Authority.