Feeds

Bank fined £3m for data loss

Still not taking it seriously

Application security programs and practises

The Financial Services Authority has fined HSBC £3m for failing to properly look after its customers' information and private data.

These failures to follow proper processes led to at least two losses of customer data.

The FSA investigated the bank and found unencrypted customer details on open shelves and unlocked cabinets. Customer details were also sent via the post or couriers to third parties, and staff were not trained in dealing with risks associated with identity theft.

In April 2007 HSBC Actuaries lost details on 1,917 pension scheme members. In July HSBC Actuaries, along with two other subsidiaries, were warned by HSBC Group Insurance's compliance department to sort out data security. But in February 2008 HSBC Life sent an unencrypted CD through the post containing details of 180,000 customers. The CD was lost.

HSBC Life UK Limited (HSBC Life) was fined £1,610,000, HSBC Actuaries and Consultants Limited (HSBC Actuaries) was fined £875,000 and HSBC Insurance Brokers Limited (HSBC Insurance Brokers) was fined £700,000.

Margaret Cole, director of enforcement at the FSA, said: "These breaches are very disappointing. All three firms failed their customers by being careless with personal details which could have ended up in the hands of criminals.

"It is also worrying that increasing awareness around the importance of keeping personal information safe and the dangers of fraud did not prompt the firms to do more to protect their customers' details."

Since HSBC cooperated with the FSA investigation, it had its fine discounted by a third. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.