Tesco bank compensates £2.5 million to 9K cyber attack victims

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Tesco Bank has paid £2.5 million to almost 9,000 customers whose money was purloined by cyber thieves. British Authorities in association with a National Cyber Security Center( NCSC) from GCHQ are trying to trace out the root cause of this online cash theft that took place in last weekend.

Benny Higgins, the CEO of Tesco Bank has disclosed that none of the personal info of customers was leaked in the digital theft and only cash was taken from the accounts of the said number of customers without their permission.

According to the latest report in Telegraph, more such online currency thefts will take place in small banks, as they are not often well protected as their large counterparts.

On Monday this week, Tesco bank reacted sharply to the cyber attack and suspended all online transactions from all current accounts. Authorities are still trying to figure out the source of a cyber attack which could also be a ‘state sponsored cyber attack’.

Benny Higgins, the CEO of Tesco Bank told to sky news that regardless of how much one invests in preventing such thefts, some do take place in this digital age.

According to a survey, more than 75 cyber attacks on financial institutions have been reported in Britain this year- up from just 5 in 2014.

Very recently, JP Morgan has said that it is spending $600 million on cyber security on an annual note and is confident that no other financial institution in the world would do the same in the interest of customers.

Going with the stats, Tesco bank was formed in 1997 through a joint venture between the Royal Bank of Scotland and Tesco, the UK’s largest supermarket. Its total revenue is estimated to be around £ 1.075 billion and stands at number 7th position in UK’s top bank’s lineup.

But with the latest cyber incident, the image of the bank could get tarnished in the international financial market and also among the bank customers.

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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