Tesco Bank fined millions over 2016 cyber-attack - MSE News

Former_MSE_Naomi

Tesco Bank has been fined £16.4 million by the financial regulator after failing to protect customers from a "largely avoidable" cyber-attack in November 2016...

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'Tesco Bank fined millions over 2016 cyber-attack'

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badger09

It could have been £33.6 million. Does that mean Tesco can afford to maintain 3% interest after April:D

Shakin_Steve

34 fraudulent transactions and they got away with £2.6 million? That's an average of over £76,000 per account. Talk about being picky. My couple of grand not good enough for you, eh?

aj23_2

Where does the fine money actually go to? And what's it spent on? Because that's a lot.

HornetSaver

aj23 wrote: »

Where does the fine money actually go to? And what's it spent on? Because that's a lot.

Indeed. Where's my cut?

SnowTiger

aj23 wrote: »

Where does the fine money actually go to? And what's it spent on? Because that's a lot.

After costs, the booty goes to Philip Hammond.

https://www.fca.org.uk/publication/consultation/cp13-01.pdf:

Financial penalties

3.7 The amount of financial penalties collected by the FSA in 2012/13 were £381.8m. Following changes made by the 2012 Act these financial penalties, net of certain enforcement costs, will be paid to the Exchequer in April 2013.

colsten

badger09 wrote: »

It could have been £33.6 million. Does that mean Tesco can afford to maintain 3% interest after April:D

I reckon interest rate cuts are now a certainty

greyteam1959

Or the cost of their baked beans goes up ??

PixelPound

colsten wrote: »

I reckon interest rate cuts are now a certainty

Not sure, it all depends on how their reputation is affected. TSB after their outage increased the APR from 3% to 5% as one of the measures of offsetting the bad publicity. If Tesco end the 3% or cut it, people will just leave.

eskbanker

nic_c wrote: »

Not sure, it all depends on how their reputation is affected. TSB after their outage increased the APR from 3% to 5% as one of the measures of offsetting the bad publicity. If Tesco end the 3% or cut it, people will just leave.

I doubt that the fine will hit their reputation particularly badly, given that the breach itself was widely publicised when it happened in late 2016 (i.e. Tesco have already had their 'TSB moment'), and arguably they fixed their 3% rate as a measure to offset any bad publicity in the first place, bearing in mind that the rate fix was then announced in early 2017.

Personally I suspect that they'd have dropped the rate next April anyway, given market conditions, etc, but this fine, while substantial in absolute terms, isn't likely to be a body blow to a bank with £9.2bn of customer deposits and £215m of profits, which will doubtless have had a provision in its accounts for this rather than it being a surprise....

karlie88

£2.26m taken via 34 fraudulent transactions? I don't believe a word of that.

Hats off to the fraudsters though, they saw a gap and went for it BIG TIME. I seem to recall lots of iPhone purchases in South America - must have been a very large co-ordinated effort.

I'm interested in how they managed it...