18 May 2018: Customers of TSB have complained that their accounts have been compromised, just weeks after the company's IT systems went into meltdown following a platform migration project that went awry.
According to MoneySavingExpert, the personal financial website set-up by journalist Martin Lewis, a number of customers have complained in recent days after seeing fraudulent activity on their TSB accounts. Furthermore, customers added that it took hours for them to contact TSB's fraud ‘hotline'.
One customer told MoneySavingExpert: "On logging on to internet banking I could see that all my savings and bills accounts had been transferred into my current account and then all those funds including my overdraft limit were transferred out.
"I called the TSB fraud line and it took me three hours to get through to them. Once through they freezed my internet banking and cancelled my cards and telephone banking - it was too late by then.
"I've called again this morning to chase and it took two hours to get through. Again, no update available. So I'm now in the situation that I have no money, no idea when I might get it back, no cards that work, no internet banking and no telephone banking."
Another wrote: ""I noticed that £9,000 of a loan that I hadn't applied for had appeared in my TSB account. I immediately tried to call TSB - however it took them four and a half hours to answer the fraud line.
"During this time, I watched as the £9,000 loan and £7,000 of wedding savings were transferred to different accounts. They have said I will hear back within a week."
Another suggested that their account had been emptied via internet banking, indicating that not only has the bank still not ironed out all the faults in its systems - effectively, the banking platform of its parent company Banco Sabadell - but that customer accounts are not secured.
That customer wrote: "We spoke to TSB yesterday, all our online and telephone banking is frozen and we're basically living off credit cards and a small amount of savings until TSB get back to us. They said it would be next week.
"Considering it took nearly four hours to even speak to them yesterday, I'm guessing they're short-staffed."
Equally, of course, it implies that they are inundated with complaints of fraud.
In a statement, TSB suggested that customers had been phished, rather than admit to any insecurity on their part.
"It is a sad fact that fraudsters might try to take advantage of situations like these. We are reminding customers not to click on any links or messages which they receive that they feel are suspicious," the bank said.
However, TSB customers responding to the MoneySavingExpert report have suggested that it still isn't possible to do something as basic as change passwords on TSB's new online banking platform.
4 May 2018: TSB CEO Paul Pester has claimed that the migration of more than five million customer accounts "went smoothly" and blamed the organisation's IT meltdown over the past two weeks on middleware "causing issues with the throughput of data".
Pester was appearing before the House of Commons Treasury Select Committee, investigating the IT issues that have dogged the bank, the sixth biggest in the UK, following its banking platform migration from former parent Lloyds Bank to current owner's Banco Sabadell.
He claimed that around half of the bank's customers had encountered problems on the day the new system was switched on, with 95 per cent of customers now able to log-in to their accounts without problems.
However, two Treasury Committee staff members weren't able to do so during the session and Treasury Committee member Simon Clarke MP accused Pester of underplaying the continuing problems, given the level of continuing complaints.
Pester suggested that the core of the continuing problems was that the bank's online banking function was struggling to deal with demand, but was unable to give a date for when all the various problems would be fixed. He also insisted that the new system had been rigorously tested beforehand.
Committee chair Nicky Morgan, though, accused Pester of being "extraordinarily complacent" for claiming that the platform migration had gone smoothly.
The banking platform shift comes after TSB was spun-out of Lloyds Bank in 2013 in response to regulator demands for more competition in the retail banking sector. Less than two years later, it was acquired by Spain's Banco Sabadell. The platform shift is intended to save TSB around £100 million in operating costs
Under questioning from MPs, Pester said that he would be foregoing his £2 million bonus this year and hinted that other executives would also see their bonuses cut.
Nevertheless, noted The Guardian, Pester will still be paid £1.3 million this year, with various other bonuses totalling £1.3 million in pay and various benefits on top of that.
2 May 2018: TSB, the bank spun-off from Lloyds Bank and subsequently acquired by Spain's Banco Sabadell, has called in a City law firm to investigate its botched IT platform migration.
The migration was intended to get TSB's customers - almost all of whom were Lloyds Bank customers unilaterally shifted to TSB by regulatory fiat - off of Lloyds' systems and onto the same IT platform used by Banco Sabadell.
However, the migration, which was supposed to have occurred from around 4pm on Friday 20 April and be completed by the afternoon of Sunday 22 April, caused a series of outages and glitches, with online banking still down two weeks later.
The appointment of the law firm is part of a move to mollify MPs before CEO Paul Pester and new chairman Richard Meddings appear before the Parliamentary Treasury Select Committee to answer questions about the prolonged outage.
@TSB @PaulPester #tsb #TSBFAIL #TSBfiasco I should've completed on my house last Fri but you've lost my deposit which I CHAPSed on Thurs 26th. Unless this money gets to my solicitor ASAP, I cant complete and Im at real risk of being homeless! Please help !!— Jamie Redfearn (@JamieRed86) May 1, 2018
Customer are also angry about the lack of communication from the bank which, following the best PR advice, has kept advice to a minimum in order to stay out of the news.
Furthermore, as a result of the outage, some customers claim that, for example, house moves have fallen through resulting in lost deposits, and payments have gone awry.
Ok so I just looked at the source code for the @TSB online banking login page and I am screaming. The running up and down the walls kind— Chris Applegate (@chrisapplegate) May 1, 2018
More technical customer have highlighted basic errors in TSB's online banking login pages highlighting, for example, SSL certificates that will very soon be considered unsafe by Google and other web browser makers.
I'm wondering about the attempts their JS is making to connect to a web sockets service on my local PC. pic.twitter.com/wdEeWRjXsE— ionCube Ltd. 🌐 (@ionCube) May 1, 2018
26 April 2018: TSB, the bank floated out of Lloyds in 2013 and snapped up by Spain's Banco Sabadell less than two years later, has called in IBM in a bid to iron out its re-platforming project that went catastrophically wrong this week.
The bank made the announcement during its first-quarter results call this morning, in which it also revealed a dip in pre-tax profits.
It said that IBM had been brought it to attempt to resolve ongoing performance issues with its new servers, that the organisation had acquired to support the major project.
MPs on the House of Commons Treasury Select Committee recently demanded answers from the bank, following widespread reports of disarray in its consumer accounts, with some customers wrongly credited with tens of thousands of pounds, others seemingly having fallen into arrears on mortgages and loans, which others have been unable to access their funds at all.
Some have posted screenshots implying that their accounts had been re-denominated into dollars.
TSB has said that it will waive overdraft fees and interest for April for its retail and small business customers, in addition to guranteeing that its customers will be compensated for any financial loss as a result of the problems.
It published an update from its CEO Paul Pester over its Twitter feed, apologising to customers for the ongoing issues.
The re-platforming project had been intended to take place between Friday last week and Sunday evening. However, not only did work over-run, but customers woke up on Monday morning to the serious, ongoing IT issues.
Many claimed that they never wanted to be customers of TSB in the first place - having been transferred from Lloyds Bank by regulatory decree - and have pledged to move their accounts, just as soon as TSB can work out what their accounts are supposed to look like.
23 April 2018: Newly re-established High Stree bank TSB has been plagued with issues affecting its online banking systems following a system upgrade over the weekend - including glitches enabling users logging-in to online banking seeing the account details of other customers.
TSB warned customers before the weekend that some of its online banking and money transfer services would be "unavailable" while it completed maintenance and upgraded its IT systems, which were once linked to its former parent, Lloyds Bank.
We're planning an upgrade to our systems between 4pm Friday 20th of April until 6pm Sunday 22nd of April. We're sorry but during this time some services, like online banking, making payments or transferring money won't be possible. For details please visit https://t.co/jSmnTgJcDZ pic.twitter.com/H3JWJtgNxC— TSB (@TSB) April 19, 2018
However, the window for the work, which was scheduled to run from Friday at 4pm to Sunday at 6pm, appears to have overrun into Monday morning, and is still unavailable on Monday afternoon.
Nevertheless, some customers who have tried logging on have reported on Twitter of seeing other people's accounts when they did so. One claimed to have seen an account totalling more than £20,000. Another apparently discovered he had been wrongly credited with £13,000 after logging back in.
Another Twitter user, @xthannahx, said:
"@TSB as soon as I can get access to my own money I'm closing my accounts down. Not been able to get money since Friday but you can still access payments, tsb is the worst bank I've ever dealt with. #tsb"
Yeah that's what they done to me to. I've not been able to get any money over weekend as it's in my savings 😡😡— Tracey Hannah✌ (@xthannahx) 23 April 2018
TSB said there were still "intermittent issues" with its services but didn't go any further than that. It also blamed "large volumes" of customers trying to access their accounts for not fixing it sooner, insisting it was "working as hard as possible" to restore the service.
Many customers - who didn't necessarily choose to bank with TSB but were transferred to it from Lloyds when it was de-merged - have vowed to ditch the bank.
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