Tesco Bank fined £16.4m after hackers siphoned £2.26m from customers in 2016

John McCarthy reports:

The Financial Conduct Authority (FCA) has fined Tesco Bank for “failing to exercise due skill, care and diligence in protecting” its current account holders. The ruling comes almost two years after the company was hit with a cyber attack that saw money stolen from an estimated 20,000 customers.

Tesco Bank has been fined £16.4m for its part in enabling the cyber-attack, largely security deficiencies that made user accounts vulnerable to the theft. Across 48 hours, hackers netted £2.26m from Tesco Bank accounts.

Mark Steward, executive director of enforcement and market oversight at the FCA, said: “The fine the FCA imposed on Tesco Bank today reflects the fact that the FCA has no tolerance for banks that fail to protect customers from foreseeable risks.”

Read more on The Drum.

About the author: Dissent