HSBC Fined for Cutting Corners on Data Security
Three HSBC firms have been fined £3 million after failure to comply with IT and data security legislation.
The Financial Services Authority found that HSBC Life UK, HSBC Insurance Brokers and HSBC Actuaries and Consultants were not providing adequate training for their staff in order for them to identify risks related to identity fraud.
The HSBC companies were sending large amounts of data using the postal service and couriers without any form of encryption. Vast numbers of customer’s confidential details were placed at risk.
Margaret Cole (Director of Enforcement for the FSA) said:
’These breaches are very disappointing. All three firms failed their customers by being careless with personal details which could have ended up in the hands of criminals.
‘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.’
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