Right to Reply: HSBC data theft highlights consumer trust rift with online banks
- Added:
- Mar 15, 2010
Last week, HSBC admitted it the details of 15,000 account holders had been stolen by a former IT employee, who then passed it to the French tax authorities. Paul Skinner, UK & Ireland ICT Practice Leader at Chubb Insurance Europe, argues why the online banking sector still has a long way to go to earn consumers’ trust.
“The recent theft of 15,000 accounts from HSBC’s private banking unit should act as a wake up call to businesses to ensure internal working practices are sufficient to protect confidential data. Companies that fail to meet the requirements of any data protection law, not only face the threat of action from a local Information Commissioner, but also run the risk of losing the trust and confidence of their existing and future customers.
“The UK Information Commissioner (ICO) has made it clear that serious breaches are likely to result in criminal prosecution in the future. With the ICO now having powers to levy significantly larger fines, companies will need to factor in the financial penalty for losing confidential data. . Coupled with this, in the future legislation may make it compulsory for all companies to give notification of a breach.
“This is a classic case of what can happen if strict practices and procedures are not put in place and constantly audited or alternatively are simply not followed. This should act as a stark reminder to companies to ensure they are adequately covered by their insurance policy as any subsequent consequential losses may not be insured.”
By Paul Skinner
UK & Ireland ICT Practice Leader
Chubb Insurance Europe
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