The Bank of England has launched an investigation into allegations regarding potential security risks concerning customer data at Metro Bank . The Bank of England is currently investigating allegations regarding potential security risks concerning customer data at Metro Bank.

It was reported that concerns were raised regarding the integrity and security of software used by Metro Bank's in-branch coin counters, commonly referred to as Magic Money Machines. According to communications reviewed by The Guardian, the original software for these machines might not have been intended for online banking systems but was adapted by Metro Bank for direct cash deposits into customer accounts, possibly introducing vulnerabilities into the system. According to The Guardian, sources familiar with the matter suggested that Metro Bank may have shared the source code for these machines in a manner that could compromise customer accounts, potentially making them susceptible to unauthorised access.

The same source revealed that the Bank of England's whistleblowing team has been reviewing these allegations and has forwarded the communications to the Financial Conduct Authority (FCA) for further examination. Both the Bank of England and the FCA declined to comment on the matter, while Metro Bank did not directly respond to the allegations. Metro Bank's legal issues Metro Bank has not reported any security incidents or data breaches to date.

However, the bank has been involved in a protracted legal dispute concerning its coin-counting machines, which are primarily designed for children and feature animated displays. The dispute involves a US company, Arkeyo, which provided the software to Metro Bank for six years. Arkeyo alleges that Metro Bank leaked its source code to a competitor, leading to a legal battle that has spanned both US and UK courts since 2017.

The ongoing legal proceedings coincide with a challenging period for Metro Bank, which faced significant financial and operational setbacks in recent years. In 2019, the bank admitted to an accounting error that resulted in a substantial drop in its share price, followed by the departure of its co-founder and chief executive. In 2023, Metro Bank encountered regulatory problems that necessitated an emergency deal to shore up its balance sheet, resulting in a majority ownership stake held by a Colombian billionaire.

Amid these challenges, Metro Bank announced plans to reduce its workforce by 1,000 employees and abandon its seven-day branch model as part of an expanded cost-cutting strategy following the emergency deal. .