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Wednesday, July 22, 2009

Careless HSBC

HSBC has been fined over £3M by the FSA, for the "careless" handling of confidential details of tens of thousands of its customers.

HSBC's data security failed, causing the bank to send "large" quantities of unencrypted private details via courier to third parties and leave information lying on open shelves and in unlocked cabinets where it could have been lost or stolen.

In two episodes, similar to the datagate fiasco at HMRC,
unencrytped CDs holding thousands of private customers details were lost in the post.

Ironically, one of the lapses occurred after HSBC had received a warning about its security procedures.

The FSA stated that it was shocked that HSBC had acted so carelessly despite warnings.

HSBC, having been hit where it hurts (in the pocket), said that it has taken a "number of remedial actions" including contacting the customers involved, improving staff training and demanding that all electronic data in transit is encrypted.

Stable doors and bolting horses spring to mind!

1 comment:

  1. smithy8:14 AM

    So who fines the government for the "careless" handling of confidential details when they do it ?