Lloyds Banking Group has revealed that an IT glitch exposed the personal data of up to 447,936 customers, according to findings shared with the UK Treasury Committee.
The issue, caused by a software defect during a routine overnight update, allowed users to view other customers’ transaction details, including sensitive information such as account data and national insurance numbers. The incident affected customers across Lloyds, Halifax and Bank of Scotland platforms.
More than 114,000 users accessed transaction pages that displayed information belonging to other individuals. While no direct financial losses have been reported, the bank has paid compensation totaling £139,000 to thousands of affected customers for distress and inconvenience.
The case highlights ongoing risks in digital banking systems as financial institutions increasingly rely on online services while reducing physical branch networks.
Regulators have requested further explanations from Lloyds, with the bank required to provide follow-up updates within one month and again after six months.
