Lloyds Banking Group Investigates Data Exposure After IT Glitch – Fintech

Lloyds Banking Group has launched an internal review after a technical issue briefly exposed sensitive customer data across its digital banking platforms.

The glitch, which occurred on Thursday morning, allowed users of Halifax and Bank of Scotland apps to view transaction details belonging to other customers. According to reports, some users were able to see charges, account activity, and even highly sensitive information such as national insurance numbers.

One affected customer shared that, within a 20-minute window, she could access details from multiple accounts through the Bank of Scotland app.

Sources close to the bank indicated that the issue stemmed from an overnight technical fault and was resolved quickly once identified.

In response, Lloyds stated that the disruption was short-lived and has since been fixed. The bank also confirmed it is actively investigating the root cause of the issue.

Meanwhile, the Information Commissioner’s Office (ICO) has acknowledged the incident and is expected to make further enquiries into the matter.

This incident comes at a sensitive time for Lloyds, as the bank is already under scrutiny for its data practices. Previously, it faced questions over the use of anonymised employee account data in internal decision-making processes.

The situation also highlights the challenges Lloyds faces as it pushes forward with its ambition to position itself as a leading fintech player in the UK. Under CEO Charlie Nunn, the company has been investing heavily in upgrading its technology infrastructure as part of a long-term transformation strategy.

Despite the incident, Lloyds’ stock saw only a short-term dip during the day’s trading, and the bank’s shares remain significantly up over the past year.