Tesco PLC (LON:TSC) has agreed to pay £16.4mln as part of a settlement with the Financial Conduct Authority (FCA) over a cyber-attack on its Tesco Bank in 2016.
The company said the “sophisticated criminal fraud attack” did not involve the theft or loss of any customers' data, but led to 34 transactions where funds were removed from accounts, and other customers suffered service disruptions.
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Tesco said once it was aware of the attack, it responded quickly to stop the fraudulent transactions, updated customers regularly and deployed significant resources to return customers to their previous financial position.
"We are very sorry for the impact that this fraud attack had on our customers. Our priority is always the safety and security of our customers' accounts and we fully accept the FCA's notice,” the CEO of Tesco Bank, Gerry Mallon, said in a statement.
“We have significantly enhanced our security measures to ensure that our customers' accounts have the highest levels of protection. I apologise to our customers for the inconvenience caused in 2016,” he added.
Shares in Tesco were 0.2% down at 239.40p in early trade.