Tesco Bank Fined £16.4m For Exposing Customers

Tesco Bank has agreed to pay £16.4m as part of a settlement with the Financial Conduct Authority following a cyber-attack in 2016.Tesco said the attack did not involve the theft or loss of any customers’ data, but led to 34 transactions in which funds were debited from accounts, and other customers having normal service disrupted.

The FCA said the fraud netted cyber-attackers £2.26m, exploiting “deficiencies” in Tesco Bank’s design of its debit card, its financial crime controls and in its financial crime operations team.

But it added that, following the attack, Tesco Bank immediately put in place a “comprehensive redress” programme and devoted significant resources to improving the deficiencies that left the bank vulnerable to the attack. Had Tesco Bank not provided a high level of cooperation to the FCA and agreed to an early settlement, the watchdog would have fined the lender £33.56m.

The Tesco Bank chief executive, Gerry Mallon, 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.”

Mark Steward, the 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.

“In this case, the attack was the subject of a very specific warning that Tesco Bank did not properly address until after the attack started. This was too little, too late. Customers should not have been exposed to the risk at all.

“Banks must ensure that their financial crime systems and the individuals who design and operate them work to substantially reduce the risk of such attacks occurring in the first place.

“The standard is one of resilience, reducing the risk of a successful cyber-attack occurring in the first place, not only reacting to an attack.”

Guardian:

You Might Also Read:

Tesco Could Have Been Facing £2bn Fine After The Bank Hack:

British Airways Faces £Multimillion Fine:

ICO Fine Facebook Half A Million Pounds:

 

 

« How To Hack the Hackers: The Human Side Of Cybercrime
The Image Of Julian Assange Grows Darker »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

ManageEngine

ManageEngine

As the IT management division of Zoho Corporation, ManageEngine prioritizes flexible solutions that work for all businesses, regardless of size or budget.

NordLayer

NordLayer

NordLayer is an adaptive network access security solution for modern businesses — from the world’s most trusted cybersecurity brand, Nord Security. 

LockLizard

LockLizard

Locklizard provides PDF DRM software that protects PDF documents from unauthorized access and misuse. Share and sell documents securely - prevent document leakage, sharing and piracy.

BackupVault

BackupVault

BackupVault is a leading provider of completely automatic, fully encrypted online, cloud backup.

ZenGRC

ZenGRC

ZenGRC - the first, easy-to-use, enterprise-grade information security solution for compliance and risk management - offers businesses efficient control tracking, testing, and enforcement.

Cambray Solutions

Cambray Solutions

Cambray Solutions LLC., is a leading technology consulting and software solutions company.

MobileIron

MobileIron

MobileIron provides EMM capabilities to IT organizations that need to secure mobile devices, applications and content.

Global Digital Forensics (GDF)

Global Digital Forensics (GDF)

GDF specialise in Digital Forensics and e-Discovery. Other services include Data Breach Response and Cyber Security.

Cyber Security For Critical Assets (CS4CA)

Cyber Security For Critical Assets (CS4CA)

Cyber Security For Critical Assets is a global series of summits focusing on cyber security for critical infrastructure.

Verlingue

Verlingue

Verlingue (previously ICB Group) is a leading corporate insurance broker providing Insurance, Risk Management and related advice to businesses and private clients.

Cyber Security Agency of Singapore (CSA)

Cyber Security Agency of Singapore (CSA)

The CSA is the national agency overseeing cybersecurity strategy, operation, education, outreach, and ecosystem development.

Saviynt

Saviynt

Saviynt is a leading provider of Cloud Security and Identity Governance solutions.

X4 Technology

X4 Technology

X4 Technology is a leader in finding the very best technology talent for some of the world’s most innovative start-ups and globally recognised brands.

Blockchain Research Institute (BRI)

Blockchain Research Institute (BRI)

Blockchain Research Institute (BRI) is an independent, global think-tank. We bring together the world’s top global researchers to undertake ground-breaking research on blockchain technology.

Vivitec

Vivitec

Vivitec security services are tailored for your business, industry, risk, technology, and size to ensure great protection and planned response for the inevitable cyber-attacks on your business.

IDX

IDX

IDX is the leading consumer privacy platform built for agility in the digital age.

Grindstone Ventures

Grindstone Ventures

Grindstone Ventures is a post-seed fund that supports post-seed equity and quasi-equity investments in early-stage innovation-driven and/or technology companies.

Zyston

Zyston

Zyston's solutions provide end-to-end management of your cybersecurity needs. Our range of services help protect your business where it needs it the most.

Bluewave

Bluewave

Bluewave are a strategic IT advisory company that offers businesses a simple and comprehensive way to purchase information technology solutions.

Quantum Ventura

Quantum Ventura

Quantum Ventura is a technology innovation company with a single mission of delivering customer-centric advanced solutions to US Federal & State Governments and Private Sector customers.

Allstate Identity Protection

Allstate Identity Protection

Allstate make it easy to provide complete identity protection, so everyone can live more confidently online.