Tesco Bank Agrees Settlement With Financial Conduct Authority Following Cyber Attack

Tesco Bank accepts FCA’s notice and agrees to settlement of £16.4m.

In November 2016, Tesco Bank was the victim of a sophisticated criminal fraud attack. This fraud did not involve the theft or loss of any customers’ data, but led to 34 transactions where funds were debited from customers’ accounts, and other customers having normal service disrupted.

The FCA recognised in the notice that, once senior management were aware, Tesco Bank responded quickly to stop the fraudulent transactions, updating customers regularly and deploying significant resources to return customers to their previous financial position. Tesco Bank considers this a reflection of its customer centric culture.

Commenting on the FCA’s notice, Gerry Mallon, Tesco Bank Chief Executive, said:-

“We are very sorry for the impact that this fraud attack had on our customers. Our priority is always the safety and security of our customers’ accounts and we fully accept the FCA’s notice. We have significantly enhanced our security measures to ensure that our customers’ accounts have the highest levels of protection. I apologise to our customers for the inconvenience caused in 2016.”