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Tesco Bank Likely to Attract Hefty Fine from FCA for Cyber Attack

 

According to reports from Sky News, the finance watchdog Financial Conduct Authority of Britain may fine Tesco Plc's banking arm over 30m pounds equivalent to USD39m with respect to one cyber attack of 2016.

 

Tesco Bank is actively negotiating with FCA regarding the proposed penalty's scale, reports Sky as a legal insider told it. The cyber assault against the bank resulted in theft of money from more than 40,000 customers, causing a dive by Tesco Bank into bedlam while compelling it towards halting Internet transactions over a span of 2days two years back. Telegraph.co.uk posted this, September 24, 2018.

 

However, to attain a resolution for the matter Tesco Bank hopes it will draw a less than 20m pounds penalty, the Financial Times reveals. It's most common to have negotiations between FCA and any organization for a final penalty on the latter despite such an organization agreeing to the fact findings of the regulator. Tesco Bank understandably has put the ultimate number at less than fifty accountholders each of who was returned the money in just few days, whilst all client data remained safe from compromise.

 

The negotiations between banks and the FCA regarding the watchdog's planned penalty on the company follow with banks being scrutinized more and more over cyber attacks and IT failures. In the week just gone by, millions of clients couldn't access their Internet accounts following both NatWest of Royal Bank of Scotland, and Bardays encountering IT outages.

 

The legal source further said that a considerably smaller fine could be negotiated albeit there wasn't any surety about a swift resolution of the matter.

 

Meanwhile, FCA hasn't still imposed a considerable scale of penalty on any organization over an incident related to cyber attack. The watchdog fined RBS 42m pound during 2014; however, that was regarding certain information technology outage and not any cyber attack. Last week, ICO (Information Commissioner's Office) imposed a 500K pound fine on Equifax for a huge level of data hack. But, again that was related to personal data loss and not to account owners' money. Equifax's probe by FCA is still going on.

» SPAMfighter News - 28-09-2018

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