Shoddy data companies face heavier punishment

Posted in 'Identity Theft' by Richard Catlin

26 January 2010

Companies entrusted with keeping our personal information safe who fail to do so face fines of up to £500,000 when new powers are assigned to the Information Commissioner's Office (ICO) from 6th April.

With over 150 data losses in the last two years alone – not including those which went undisclosed – stronger action is long overdue against companies who fail to take the necessary steps to keep consumers’ personal data safe.

The most recent breach saw social work files containing sensitive information left in a second-hand filing cabinet that was purchased by a member of the public. Lancashire County Council has agreed to produce a formal review to prevent it happening again, in order to avoid a heavier punishment.

The new powers will allow the Information Commissioner to impose substantial fines, and will be based on the seriousness of the breach, likelihood of substantial damage and distress to individuals, whether the breach was negligent or deliberate, and the steps that the organisation has taken to prevent it happening again.

The new penalties are designed to act as a deterrent, with the hope that all organisations will take heed and improve their practices in advance.

Consumers already face an ongoing battle against fraudsters and identity thieves, and this is an area specifically highlighted by the ICO as one where organisations must do more to protect personal information.

Although there’s not much you can do yourself to influence the way that organisations look after your personal data, you can take steps to reduce your chances of falling victim to identity theft. Our free Identity Theft Check Service lets you see if any particular area of your lifestyle puts you at risk, and what steps you should take to remedy it.

You can also monitor your credit files with checkmyfile, allowing you to spot any warning signs of fraud.