HSBC fined £3.2m over data risks
Three firms that operate under the umbrella group HSBC have been fined
a total of £3.2 million by the City watchdog for losing the details of
thousands of customers and putting them at risk of identity fraud.
The Financial Services Authority (FSA) said HSBC Life lost an unencrypted CD with the details of 180,000 policy holders, while HSBC Actuaries lost a disc with data on almost 2,000 pension scheme members.
HSBC Insurance was also fined by the FSA, which said confidential information on customers was left on open shelves and unlocked cabinets in all three firms and could have been lost or stolen. The watchdog also added that employees had not been given enough training on the threat of identity theft.
Margaret Cole, enforcement director for the FSA, said: "All three firms failed their customers by being careless with personal details which could have ended up in the hands of criminals."
The security breaches came after HSBC Insurance's compliance team warned of the need for tighter data controls back in July 2007.
Ms Cole added: "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."