ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Policybazaar system vulnerabilities exposed customers' personal details, says this report
  • Government removes cap on airfares with effect from 31 August
  • Samsung Galaxy Z Fold 4, Galaxy Z Flip 4, Watch 5 series, Buds 2 Pro revealed - price, India availability, specs and more
  • Maruti Suzuki Alto K10 2022 bookings open; Check token amount and how to book online
  • DSP Silver ETF – 5 things to know about this NFO from minimum investment amount to issue closing date
Read in App
Business News » Companies News

Raid on 20,000 Tesco Bank accounts fuels UK cybercrime fears

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Raid on 20,000 Tesco Bank accounts fuels UK cybercrime fears
A Tesco supermarket is seen in west London. Image Source: Reuters

Tesco Bank, owned by Britain's biggest retailer Tesco, halted all online transactions on Monday after money was stolen from 20,000 accounts in the country's first such cyber heist.

The bank, which manages 136,000 current accounts, did not explain how the thefts had happened but said it would repay people who had lost money in the online bank robbery, which targeted 40,000 accounts in all and fuelled fears about the British financial sector's vulnerability.

Tesco Bank's Chief Executive Benny Higgins told the BBC he thought "relatively small amounts" had been stolen, but the bank declined to give details of how much money in total had been taken or if it knew how the thefts had transpired.

It said "online criminal activity" had resulted in money being "withdrawn fraudulently". Higgins said the cost of refunding people under its regulatory obligations would be "a big number but not a huge number". 

Cyber security experts said they were still lacking many details about the incident but that it could go down as one of the biggest digital heists on record.

"It is remarkable how many of these accounts were compromised and then pillaged in a relatively short period of time," Tom Kellermann, an expert in cyber crime who is chief executive of US-based investment firm Strategic Cyber Ventures, said.

Lawmaker Andrew Tyrie, chair of parliament`s powerful finance committee, criticised both banks and regulators for doing too little to improve cyber security after a string of technical failures and breaches of banking systems.

"We can't go on like this," Tyrie said in a statement, pledging to take up the issue with both Tesco Bank and regulators.

"Millions of customers remain unnecessarily exposed to the risk of IT failures, including delays in paying bills and an inability to access their own money," he said.

Tesco Bank`s website carried a statement from Higgins apologising to customers all day on Monday. The bank has about 8 million customers in total, including many who use its credit cards or insurance products but not its current accounts. 

Shares in supermarket chain Tesco, which wholly owns Tesco Bank, were down 1.85% at 200.70 pence by 1445 GMT.

Customers could still use their bank cards in shops or to withdraw cash from ATMs, though some voiced frustration at having online transactions blocked. 

"Tried to order pizza for dinner but @TescoBank has stopped online transactions. Cheers. What happens when I want to do my online shopping?" Twitter user Catherine Cutting asked.

Rise in Cyber Attacks

The bank is a minnow in Britain's retail banking market, with about 2% of current accounts, and represents only a small part of Tesco's overall business.

It contributed 503 million pounds ($623 million) to the group's revenue of 24.4 billion pounds in the first half of its 2016-17 financial year.

But while the financial hit to the group may be limited, Tesco Bank risks serious reputational damage.

"I will be writing to Tesco Bank`s Chief Executive to find out what went wrong, and what actions are being taken to reduce the likelihood of it happening again," Tyrie said.

Other British banks have been targeted by such attacks in recent years, but the Financial Conduct Authority (FCA) regulator said it was not aware of any previous incident in which customers had lost money.

Reported attacks on financial institutions in Britain have risen from just five in 2014 to more than 75 so far this year, according to FCA data, but bank executives and providers of security systems say many attacks go unreported.

HSBC apologised earlier this year after its UK personal banking websites were shut down by a “denial of service” attack, but no customer funds were at threat.

Other well-known British brands hit by significant cyber attacks over the past year include telecoms firms TalkTalk and Vodafone, business software provider Sage and electronic goods retailer Dixons Carphone.

Outside Britain, Bangladesh Bank lost $81 million in February after yet-to-be-identified cyber criminals hacked into its Dhaka headquarters and pulled the money out of its account at the Federal Reserve Bank of New York using fraudulent SWIFT wire transfers.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Tesco Bank AccountsBanking & Financial ServicesRaidTescocyber heistBritainUKBenny HigginsTalkTalkVodafoneSageDixons Carphone
Written By: Reuters
Updated: Tue, Nov 08, 2016
09:06 am
London , Reuters
RELATED NEWS
Tesco rings up improving results amid supermarket war Tesco rings up improving results amid supermarket war
Walmart, Tesco can now set up food retail outlets Walmart, Tesco can now set up food retail outlets
SWIFT refutes $81 million cyber heist allegation SWIFT refutes $81 million cyber heist allegation
Twitter, Amazon, other top websites shut in cyber attack Twitter, Amazon, other top websites shut in cyber attack
Cyber attack techniques used by US-led coalition to be imitated by other countries Cyber attack techniques used by US-led coalition to be imitated by other countries

LATEST NEWS

Debt-ridden Future Lifestyle Fashions plans to sell assets, awaits lenders' nod

Opening Bell: Sensex gains nearly 125 points, Nifty50 starts above 17,550 – Auto, FMCG, Pharma lead the surge

Apple iPhone 14 launch on September 6? Check expected release date, price, specifications, and more

Go First launches Independence Day sale: Ticket price starts at Rs 1,508 - How to book and check routes

Sebi's grievance redressal platform SCORES disposes of 2,245 complaints in July

Raju Srivastav suffers heart attack at gym, admitted to AIIMS in Delhi

Samsung Galaxy Z Fold 4, Galaxy Z Flip 4, Watch 5 series, Buds 2 Pro launched- price, India availability, specs and more

Raksha Bandhan 2022 correct date, best time; Rakhi Shubh Muhurat in India - Know inauspicious Bhadra, what to avoid as per Hindu calendar

Raksha Bandhan Bank Holiday: Will banks be functional in your city on Rakhi? Check state-wise list here

8th Central Pay Commission News: Central government employees alert! Will there be 8th CPC? Searching for release date? Check latest development

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV