Member Article

Firms warned on data protection

One of the largest law firms in the North East has warned businesses they face potential data protection fines unless they get their processes in order.

Ward Hadaway has said that the £3m penalty handed out by the Financial Services Authority to HSBC after they failed to maintain their IT and data legislation shows how seriously the authorities are taking the issue.

Judy Baker, partner in the IT team at Ward Hadaway, said: “These are significant financial penalties, even for companies the size of HSBC, and are a sign of the way that careless handling of personal data will not be tolerated.”

Judy Baker has said that the HSBC case sends out a clear message to organisations who now, more than ever, should be reviewing their data protection safeguards to ensure they are as secure as possible.

FSA research found that large amounts of electronic data had been sent via couriers or the postal service without being encrypted, meaning details were at risk.

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

“It is worrying that increasing awareness around the importance of keeping personal information safe and the dangers of fraud did not prompt firms to do more to protect customers.”

The website of the Information Commissioner’s Office contains a range of guidance on data protection. Go to www.ico.gov.uk for further information.

This was posted in Bdaily's Members' News section by Ruth Mitchell .