Feeds

UK insurer hit with biggest ever data loss fine

£2.3m for losing customer records

Boost IT visibility and business value

Zurich Insurance must pay an enormous £2.3m fine for losing thousands of British people's personal data.

The fine was imposed not by the Information Commissioner's Office but by the Financial Services Authority.

Zurich Insurance lost 46,000 customer records including some bank details when a tape back-up went missing between two sites in South Africa. Even worse, it took a year for Zurich UK to hear about the loss.

The FSA said it found no evidence that the data had been misused or compromised, but it was clear that Zurich had no effective data protection systems in place or systems to manage the risks to "the security of customer data resulting from the outsourcing arrangement".

The FSA said it had knocked a third off the fine because Zurich agreed to pay at an early stage - the company would have had to pay £3.25m instead of £2.275m.

The FSA also holds the record for the previous largest data loss fine when it fined various HSBC tentacles £2m for losing data.

Back in 2007 it also hit Nationwide with a £998,000 slap.

The ICO got the power to impose fines in April but has yet to use them. Until that point the ICO could take an offender to court in order to get a fine imposed - a maximum of £5,000 in a magistrate's court or an unlimited amount in the Crown Court.

The ICO did get Zurich Insurance to promise not to do it again and to use encryption when shifting tapes around in the future.

The lost tape included data on half a million South African clients of Zurich, and 40,000 from Botswana.

FSA statement is here. ®

Build a business case: developing custom apps

More from The Register

next story
Hello, police, El Reg here. Are we a bunch of terrorists now?
Do Brits risk arrest for watching beheading video nasty? We asked the fuzz
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
Detroit losing MILLIONS because it buys CHEAP BATTERIES – report
Man at hardware store was right: name brands DO last longer
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
UK government accused of hiding TRUTH about Universal Credit fiasco
'Reset rating keeps secrets on one-dole-to-rule-them-all plan', say MPs
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Yes, but what are your plans if a DRAGON attacks?
Local UK gov outs most ridiculous FoI requests...
EU justice chief blasts Google on 'right to be forgotten'
Don't pretend it's a freedom of speech issue – interim commish
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.