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Data Protection Breaches: Who fines the FSA?

by Richard Cunliffe

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The Financial Services Authority (FSA) has lost 41 mobile devices which contained confidential documents and e-mails in the past three years. Laptops, memory sticks and Blackberrys were all lost, highlighting the growing problem that loss of the devices brings the owner, the company and the risks to information security.

 
The FSA are often there to fine companies large amounts of money for seemingly similar lapses. A recent example is the Insurance company Zurich who were fined £2.27 million by the FSA in August for the loss of computer tapes in South Africa that contained the details of 46,000 customers.
 
Data security is top of the agenda recently with the Government announcing cyber crime as the number 1 threat to our security this week. So who will fine the FSA? Probably nobody.
 
The FSA will escape with little action as they had clear and robust procedures for dealing with these losses:
  • Memory sticks were encrypted
  • Laptops were encrypted
  • Blackberrys were password-protected (Blackberry vs iPhone security will be examined in a later article)
  • All other devices were remotely disabled
In terms of information loss, it will probably be close to zero. This is a good thing but does show that careless individuals can be costly for an organisation. In 2008, users of systems were the biggest threat to information security. In 2009, mal-ware is the biggest threat and- with a revenue of over £1bn annually- has overtaken drug trafficking. Will 2010 result in the users again coming top of the tree?
 
I don’t think it would be advisable to hand out fines for every time a piece of equipment is lost. After all, where is the problem in losing some metal and circuit boards? I suppose there is the financial cost of replacement, the loss of productivity and the damage to the company’s reputation to consider but none of these losses resulted in breach of the Data Protection Act (DPA).
 
This is the crucial difference between Zurich losing 46,000 customer details and the FSA losing a few encrypted laptops.


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Richard Cunliffe is an Information Security Officer in the IT Health Sector. He has a degree in e-business and now specialises in Data Protection. He also has a background in web development and helped establish a Lancashire-based company as the Number 1 pool table retailer in the UK. He also enjoys PS3 gaming, working out and socialising with friends.

 

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