Barclays bugged by security lapses

Barclays had to take its internet banking service offline at the beginning of August amid concerns over security. Four customers who logged on to the service found they were able to read other people's account details.

The bank said the problem was associated with a software upgrade, which ironically added a further level of security, and immediately withdrew the new software and reinstated the previous version.

Barclays has 85,000 online customers. Only seven contacted the bank to complain but some were so concerned that they took their complaints directly to the BBC.

A day after the first security breach the bank was in further hot water when a customer was able to examine an account held by another Barclays account holder who lived nearby.

Ian Smith was confronted with another person's details when he logged on to the Barclays site. Mr Smith said he was "extremely angry" because if he could see someone else's details, he assumed that other people might also be able to see his.

The bank explained that a clerk had keyed in account details incorrectly, creating a link between the two accounts. It released a statement saying: "Two customers with the same street address and postcode have accidentally had their account details tied together. This is a purely clerical error which, with 13 million customers, happens from time to time. In the context of yesterday's problem, the timing of this error is unfortunate."

The problems came in the week during which the National Consumer Council (NCC) released a survey stating that online services were being held back in the UK.

NCC director Anna Bradley said: "It is especially worrying that internet users are more, not less, likely to harbour doubts about carrying out business transactions online."

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