Customers hit by one major bank IT glitch every week

LEADING banks are suffering at least one major security or IT glitch every week which stops customers making payments.

Around half of these meltdowns affect online banking, while a quarter impact on mobile banking.

Savers and businesses are increasingly reliant on making instant payments via computers and mobile phones – a trend fuelled by the closure of thousands of bank branches.

But today’s figures will raise fears that this dependence makes the country vulnerable to technology failures and cyber attacks.

Yesterday Lloyds, Halifax and Bank of Scotland customers became the latest to suffer a major IT crash.

Lloyds Banking Group customers were unable to send money online after its ‘faster payments’ service went down.

Many claimed on social media they were unable to pay their staff or their rent or fill up with petrol because they could not move money between accounts. Under new rules, banks must disclose every major operational or security incident which prevents customers using

‘Rely entirely on online banking’

payments services – anything from cyber hacks to IT malfunctions.

Analysis of 14 British banks reveals the rising number of incidents reported to the Financial Conduct Authority in the six months from April 1 to September 30.

Both Barclays and Lloyds reported more than 30, which equates to more than one ‘major’ incident every week.

While some failures are quickly resolved, others cause chaos.

Personal finance expert Andrew Hagger, of MoneyComms, said: ‘More and more of us rely entirely on online and mobile banking, which means it’s vital that the IT behind the services is robust and reliable.

‘Banks have been pushing customers down the online banking route for years. However, investment in IT must be a priority.’

Barclays suffered the highest number of security and operational incidents in six months with 34, nine of which impacted online banking payments. Lloyds had 31 – 22 of which prevented customers making payments through online banking.

Bank of Scotland and Halifax each reported 27, including 19 affecting online banking.

HSBC and First Direct experienced ten incidents between them with only one affecting online banking. Royal Bank of Scotland, which includes NatWest, had 17 incidents, five of which affected online banking.

Almost two-thirds of Britain’s bank branches have closed over the past 30 years.

A spokesman for UK Finance, which represents the banks, said: ‘When incidents occur, firms work around the clock to get services running as quickly as possible.’