Feeds

UK insurer hit with biggest ever data loss fine

£2.3m for losing customer records

High performance access to file storage

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. ®

3 Big data security analytics techniques

More from The Register

next story
Putin tells Snowden: Russia conducts no US-style mass surveillance
Gov't is too broke for that, Russian prez says
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Whoever you vote for, Google gets in
Report uncovers giant octopus squid of lobbying influence
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Banks slap Olympus with £160 MEEELLION lawsuit
Scandal hit camera maker just can't shake off its past
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.