30 August 2016
Find out more

Barclays customer data stolen and sold to rogue traders

10 February 2014  |  5997 views  |  1 barclays signage through window 2

Authorities are investigating a security breach at Barclays which saw the confidential information of thousands of customers stolen and sold on to unscrupulous City traders.

The bank, police, Financial Conduct Authority and Information Commissioner are all looking into the breach after it was exposed by the Mail on Sunday.

The tabloid says that a whistleblower handed over a memory stick containing details on the earnings, savings, mortgages, health issues and insurance policies of around 2000 Barclays customers.

The information - which also includes passport and national insurance numbers - comes from a stolen database of up to 27,000 files, each around 20 pages long and containing details on customers who had sought financial advice from the bank, the whistleblower claims.

The Mail on Sunday says that the data is "worth millions on the black market" in part because it contains the results of psychometric tests which reveal customers' attitude to risk and could be exploited to talk them into buying "questionable investments".

Some of the 'Barclays leads' ended up in the hands of shady boiler-room operaters, the newspaper said, and from December 2012 to September last year a number of victims were persuaded to buy rare earth metals that did not exist, it is claimed.

Says the whistleblower: "The data is a gold mine for traders because it is so incredibly detailed. It gets them inside the customer's head."

The bank says that the leak seems to have affected customers who used its Barclays Financial Planning business, which was shut in 2011. Regulators have been called in and customers are being contacted.

Comments: (1)

A Finextra member
A Finextra member | 11 February, 2014, 07:17

...the files are claimed to contain psychological profiles of customers and can be used to identify customers prone to buy questionable investment instruments... If this is true - how come the bank needed such analysis of its customers seeking financial advice? Was it seeking "soft targets" for its investments offers instead of giving advice?  

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

South Korean card firms suspended over data breach

South Korean card firms suspended over data breach

03 February 2014  |  4631 views  |  0 comments | 5 tweets | 6 linkedin
Barclays fined $3.75m for electronic record keeping failures

Barclays fined $3.75m for electronic record keeping failures

02 January 2014  |  6149 views  |  1 comments | 6 tweets | 2 linkedin
Police arrest eight over £1.3m Barclays branch cyber-theft

Police arrest eight over £1.3m Barclays branch cyber-theft

20 September 2013  |  7798 views  |  0 comments | 8 tweets | 7 linkedin
Glasgow City Council hit with £150,000 penalty after laptops with financial data go missing

Glasgow City Council hit with £150,000 penalty after laptops with financial data go missing

07 June 2013  |  3560 views  |  0 comments | 3 tweets | 1 linkedin
Yorkshire Building Society censured over stolen unencrypted laptop

Yorkshire Building Society censured over stolen unencrypted laptop

26 August 2010  |  8639 views  |  1 comments
UK's ICO gets power to hit firms with £500k fines for data breaches

UK's ICO gets power to hit firms with £500k fines for data breaches

13 January 2010  |  5041 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.abe-eba.euVisit www.smartstream-stp.comFind out more

Top topics

Most viewed Most shared
India's Unified Payments Interface goes live with 21 banksIndia's Unified Payments Interface goes li...
9257 views comments | 23 tweets | 26 linkedin
R3 blockchain consortium sheds light on Concord projectR3 blockchain consortium sheds light on Co...
6696 views comments | 14 tweets | 14 linkedin
Cultural change crucial in digital transformationCultural change crucial in digital transfo...
6665 views comments | 11 tweets | 10 linkedin
Mondo becomes MonzoMondo becomes Monzo
6415 views comments | 14 tweets | 9 linkedin
hands typing furiouslyBlockchain: Some Remarkable Announcements!
6103 views 0 | 5 tweets | 14 linkedin

Featured job

Find your next job