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IT failures at British bank TSB cost $94 million so far, owner Sabadell says

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Reuters MADRID
Last Updated : Jun 07 2018 | 11:25 PM IST

MADRID (Reuters) - Information technology failures at British bank TSB have cost around 70 million pounds ($93.95 million) so far, its Spanish parent Sabadell said on Thursday.

A botched migration of TSB computer systems last month saw thousands of users locked out of their accounts and a surge in attacks by fraudsters, prompting a regulatory investigation and criticism of its chief executive.

Sabadell, which bought TSB in 2015, said in a filing to Spain's market regulator that the declared cost did not take into account the ongoing investigation.

The amount includes costs related to a temporary waiver of overdraft fees and compensation for cases of alleged fraud linked to the migration, Sabadell said in the filing.

It also takes into account the cost of paying employees overtime and bringing in additional staff and expert consultants to tackle the situation.

There have been 2,200 fraud attempts linked to the snarl and around 1,300 customers have lost money, TSB Chief Executive Paul Pester told British lawmakers on Wednesday.

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TSB called in International Business Machines Corp to help resolve the crisis, which left some customers waiting for hours in vain on helplines.

($1 = 0.7450 pounds)

(Reporting by Isla Binnie and Gdynia Newsroom; Editing by Alexandra Hudson)

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First Published: Jun 07 2018 | 11:09 PM IST

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