TSB Fined £48.65m After IT Meltdown
(22 December 2022 – United Kingdom) British lender TSB was fined £48.65 million over a botched IT migration that left two million customers locked out of their accounts for several weeks in 2018.
The IT collapse caused one of the biggest financial outages since the inception of internet banking and led to over £33 million being paid out to customers as well as the departure of the high street bank’s then chief executive, Paul Pester.
The regulators found that TSB failed to organise and control the migration adequately, and failed to manage operational risks from its IT outsourcing setup.
"The failings in this case were widespread and serious which had a real impact on the day-to-day lives of a significant proportion of TSB's customers, including those who were vulnerable " said the FCA’s Executive Director of Enforcement and Market Oversight, Mark Steward.