Life savings have been stolen from TSB accounts by fraudsters "exploiting" the bank's IT problems, with 1,300 people losing money. On occasions, people were waiting on the phone for up to nine hours to report cases, the bank's boss Paul Pester has told MPs. He said that 70 times the normal level of fraud attacks were seen last month. The introduction of a new IT system in April left customers struggling to make transactions and see their balances. The bank said it would compensate customers in full for any fraud they suffered. The evidence came after the financial regulator confirmed that it was investigating TSB and criticised Mr Pester for an "optimistic view" of services after the meltdown

During evidence earlier to the Treasury Committee, Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), said TSB bosses were "in a hole and they have got to get themselves out of that hole". He added that TSB senior managers had responsibility for the situation, even if the technology was overseen by a separate arm of its Spanish owner Sabadell. Some TSB customers are still facing problems with services after its five million customers were moved to a system run by Sabadell six weeks ago. Overall, there have been 93,700 complaints from customers.