It seems it never rains at TSB it just pours and pours following an admission by the bank’s chief executive Paul Pester that it has been rocked by more than 10,600 alerts of potential fraud since April’s IT meltdown, leading to the chairman of the Treasury Select Committee to ask: “Do you think that TSB deserves its new nickname of the ‘Truly Shambolic Bank’?”
Pester fessed up in front of MPs that TSB has had more than 90,000 complaints about its online banking problems, with some customers being forced to wait nine hours on the phone to speak to TSB’s fraud team.
It has also recorded more than 2,200 confirmed fraud attempts, with more than 1,300 customers having money stolen.
More than 12,500 TSB customers have switched their current accounts to competitors since the crisis began. Of those, Pester confessed that some 370 former customers who switched away were wrongly reported as ‘dead’.
Appearing in front of the Treasury Select Committee, Pester claimed that the bank had been hit by an “unprecedented attack on UK banking from organised crime”, with fraud attacks 70 times higher than normal.
The computer collapse started at the end of April, when TSB tried to migrate its systems from former owner Lloyds over a single weekend. Problems started within 20 minutes of the switchover, with hundreds of thousands of customers locked out of accounts for days.
Pester apologised repeatedly for the meltdown, adding that he takes “complete and utter responsibility for this”.
Financial Conduct Authority chief executive Andrew Bailey said that TSB was “initially… overwhelmed” by the volume of complaints and enquiries – 93,700 in total. Regulators previously fined Royal Bank of Scotland £56m for a similar computer failure in 2012.
A TSB spokesperson said: “We are deeply sorry for the disruption TSB customers have experienced. We remain focused on doing whatever it takes to put things right and ensuring no customer will be out of pocket as result of our technology issues.”
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