FCA chief executive Andrew Bailey told MPs on the Treasury Select Committee there had been about 10,600 incidents of fraud relating to the bank’s IT meltdown.
“They are in a hole and they have got to get themselves out of this hole,” he said.
Mr Bailey said the FCA has had some “quite frank conversations” with TSB about their level of communication and the watchdog had been “not satisfied” with it.
TSB chief executive Paul Pester told MPs: “I am deeply sorry to say that the issues we created as a consequence of migration were an opportunity for criminals to target TSB customers.”
He said the bank was “overwhelmed”, having seen 70 times the normal level of fraud attacks, well above the 4 times normally anticipated with this type of systems migration.
Dr Pester admitted to the committee that up to 1,300 TSB customers suffered financial loss due to fraudsters following the IT system failure.
He added that although there were 10,600 “fraud alerts” around 2,200 “actual attempts” at fraud were made.
here have been 93,700 customer complaints lodged since the IT systems failure
Dr Pester says there is no evidence he or TSB had intentionally misled anybody, despite several suggestions from the MPs that he had indeed misinformed both parliament and customers.
Committee member John Mann asked the bank’s bosses whether “heads would roll” in the wake of the disruption.
TSB chairman Richard Meddings told MPs that the bank would await conclusions from an internal investigation being carried out by the law firm Slaughter & May, before any punitive action is taken.
“Where there is culpability, we’ll act on it,” he said.