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Tougher line demanded on data loss after latest breach
Tracey Caldwell
Calls for greater penalties for data loss have intensified following the recent loss of the personal details of 370,000 HSBC customers. The Information Commissioner has also asked for powers to carry out data protection inspections without warning.
HSBC lost a password-protected but unencrypted disc with customers' personal details. Normally, the bank sends the data on its life insurance customers to its reinsurance firm by electronic link, but after the link failed, the data was copied to a disc and sent by Royal Mail.
Mike Davis, senior security analyst at Ovum, said regulatory authorities and information professionals needed to get their act together: "The Information Commissioner has taken a gently-gently consultative approach but it needs an exemplar case.
"In the US the prospect of prosecution under the Sarbanes-Oxley Act has helped people get their heads around the need to protect data.
"Fines should be more like [pounds sterling]100,000 per named customer.
Source: HighBeam Research, Tougher line demanded on data loss after latest breach.