Lloyds Banking Group has disbursed over £201,000 in compensation to more than 5,250 affected customers following a major IT glitch that disrupted services for nearly half a million users. The incident also potentially exposed financial details of an additional 80,508 joint account holders.
Joint Account Holders at Risk
The extra impacted individuals are joint account holders linked to 446,915 customers across Lloyds, Halifax, and Bank of Scotland. These primary customers experienced visibility of others’ transactions or shared data due to technical issues on March 12.
Lloyds confirms that the 80,508 joint holders did not access the banking app during the outage, but their transaction details may have been viewed. The bank issued alerts via the app home screen to these customers, except in specific cases, prioritizing reassurance and support.
Compensation and Revised Impact Numbers
Compensation totals £201,000, including £62,000 in goodwill payments to 1,625 additional customers since March 24. Lloyds adjusted the initial affected count to 446,915 from 447,936 after removing duplicates.
Of those, 107,937 users clicked on visible transactions belonging to others, down from an earlier estimate of 114,182. This exposure potentially revealed sensitive data, including account details, national insurance numbers, and payment references.
No Fraud Increase or Financial Losses Reported
The bank reports no rise in daily fraud levels among impacted customers since the March 12 disruption. Personal data from non-Lloyds Group customers also appeared visible, yet no related complaints have surfaced.
No instances of financial loss tied to the glitch have been identified. Lloyds states: “We have not made compensation payments on this basis. Separately, we may make goodwill payments for distress and inconvenience in individual cases where there has been a direct impact.”
The outage stemmed from a software defect during an overnight IT update.
