25 February 2018
visit www.nextgenbanking.co.uk/

UK banks face fines for dumping customer data

30 October 2006  |  6956 views  |  0 dodgy man

Several high street banks in the UK could face "unlimited fines" following allegations that they are dumping customers' confidential financial details in bin bags on the street.

The UK's Information Commissioner's Office - which enforces the Data Protection Act - said in August that it was investigating claims that high street bank NatWest, which is owned by the Royal Bank of Scotland, allegedly dumped customers data in an outside rubbish bin.

The investigation was triggered by a complaint from consumer group Scamsdirect which accused NatWest of failing to dispose of customer information securely after it found customer details dumped outside a RBS/NatWest branch in Fareham, Hampshire.

According to a report by the Times newspaper the Information Commissioner Richard Thomas has now widened the investigation to include HSBC and the Post Office.

He told the newspaper that he had received "highly disturbing evidence" that customer data, including bank statements and loan applications, had been dumped in bin bags on the street outside branches.

"There have been cases now which have quite strong prima facie evidence which we are urgently investigating, of banks’ rubbish bags found on the public highway outside banks," Thomas told The Times. "I have seen some of these where, open up the rubbish bag and there you find bank statements."

According to the report, cases being examined by the office include an application for a current account - including all the customers' details - which was found in the rubbish, as well as a loan application form that included personal details. Photocopies of bank statements with account numbers and a mortgage application letter have also been found in rubbish bins.

Thomas says members of the public and bank employees have also complained about the lax security.

He says the office is considering taking enforcement action against banks that dump data, which may result in "unlimited fines".

ID theft is estimated to cost the UK economy £1.7 billion and affects more than 100,000 people every year, according to figures from the UK's National Consumer Council (NCC).

Comments: (0)

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

Customers clean out 'double your money' RBS ATM

Customers clean out 'double your money' RBS ATM

25 October 2006  |  15336 views  |  0 comments
UK watchdog investigates RBS data breach claims

UK watchdog investigates RBS data breach claims

18 August 2006  |  10179 views  |  0 comments
One in ten Brits hit by ID theft

One in ten Brits hit by ID theft

09 August 2006  |  10294 views  |  0 comments
UK consumer group calls for one-stop ID theft support centre

UK consumer group calls for one-stop ID theft support centre

12 July 2006  |  6032 views  |  0 comments
ID theft fears hitting online banking

ID theft fears hitting online banking

24 May 2005  |  9097 views  |  0 comments
RBS launches ID theft recovery service

RBS launches ID theft recovery service

20 April 2005  |  6737 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comvisit www.swift.com/your-needs/instant-paymentsVisit www.vasco.com

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
12168 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10528 views 4 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
8892 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8335 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
7952 views comments | 10 tweets | 14 linkedin

Featured job

Competitive
Hong Kong, Asia-Pacific

Find your next job