Lloyds Banking Group has suffered a significant IT glitch, crippling thousands of its customers' ability to make payments or send money through the group's apps – Lloyds, Halifax, and Bank of Scotland. The technical issue, caused by an ill-fated IT update, resulted in an estimated 12,500 customer complaints being logged on Downdetector, a website tracking real-time service issues and outages.
According to data from Downdetector, problems began shortly after 11am on Wednesday, with customers unable to access their accounts, make payments or send money. By mid-morning, the issue had affected over 15% of Lloyds Banking Group's customer base, sparking widespread disruption and inconvenience.
The IT glitch is the latest in a concerning trend of technical issues affecting the UK banking sector. Over the past few months, banks such as Barclays and Santander have experienced problems with their online services, raising concerns about the impact on consumer trust and confidence.
Regulatory experts are now urging greater investment in IT infrastructure and cybersecurity measures to protect customers' data and prevent these types of glitches. 'These issues highlight the need for robust cybersecurity measures to safeguard customer data,' said a spokesperson for the UK's Information Commissioner's Office (ICO).
The UK government's upcoming EU AI Act, set to come into force in 2024, will further emphasise the importance of implementing robust cybersecurity measures to protect customers' data. The Act aims to ensure that AI systems are developed and used in a way that respects human rights and fundamental freedoms.