The Ministry of Defence has been the target of a large-scale data breach, it is understood. Sky News reported that China was behind the cyber attack.
A third-party payroll system has been hacked, potentially compromising the bank details of all serving armed forces personnel and some veterans.
A small number of addresses may also have been accessed. The department took immediate action when it discovered the breach, taking the external network, operated by a contractor, offline.
It is understood that initial investigations have found no evidence that data has been removed. READ MORE The latest businesses shamed for not paying tax in Greater Manchester - including top-rated restaurant But affected service personnel will be alerted as a precaution and provided with specialist advice.