Tesco’s (LON:TSCO) banking unit is facing the Financial Conduct Authority (FCA) biggest-ever cyberattack-related fine, Sky News has revealed. The fine would come about two years after the challenger bank’s online services were hacked by criminals about two years ago.
Tesco’s share price has climbed higher in today’s session, having gained 0.63 percent to 240.90p as of 13:25 BST. The advance is largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.55 percent higher at 7,499.38 points. The group’s shares have added just under a third to their value over the past year, as compared with about a 2.4-percent gain in the Footsie.
Tesco Bank faces record FCA fine
Sky News reported last night that the FCA had warned Tesco that it was considering imposing a penalty of more than £30 million on the company. The fine will follow an incident in November 2016 which forced the lender to suspend all online transactions after it detected criminals trying to access its services.
A legal source told the newswire that the challenger bank was contesting the scale of the FCA’s proposed penalty and was in active negotiations with the watchdog about it. The insider noted that a ‘substantially lower’ amount could be agreed within the next few weeks although there was no guarantee that the issue could be resolved swiftly.
Analysts on blue-chip supermarket
The 16 analysts offering 12-month price targets for Tesco for the Financial Times have a median target of 277.50p on the shares, with a high estimate of 300.00p and a low estimate of 200.00p. As of September 21, the consensus forecast amongst 21 polled investment analysts covering the blue-chip supermarket has it that the company will outperform the market.