Cybersecurity

Cyber Threat Looms for U.K. Banks as Ring-Fencing Exposes Data

Transfer of data a ‘perfect scenario’ for cyber criminals
1 million sort codes will change as new rules approach

Coaxial cables feed into a server inside a comms room at an office in London, U.K., on Friday, Oct. 16, 2015. A group of Russian hackers infiltrated the servers of Dow Jones & Co., owner of the Wall Street Journal and several other news publications, and stole information to trade on before it became public, according to four people familiar with the matter.
Photographer: Chris Ratcliffe/Bloomberg

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By Stefania Spezzati and Suzi Ring

November 16, 2017 at 5:00 AM UTC

This article is for subscribers only.

New rules that were supposed to protect depositors may end up making them vulnerable to fraudsters. Changing the account data of about a million clients at banks including Barclays Plc and HSBC Holdings Plc is a golden opportunity for hackers, the U.K.’s Financial Conduct Authority has warned banks.

The FCA has briefed lenders about its concerns, as British banks alert customers of the need to move their accounts, said a person with knowledge of the discussions, who asked not to be identified because the matter is private. A spokesman for the regulator declined to comment and pointed to its warnings on treating all bank communication with care.