Sensitive mortgage information pertaining to 13,000
Halifax
customers was stolen from an employee's car last week.
Halifax, part of banking group
HBOS, has
apologised to each of its affected customers and promised that nobody will be
left out of pocket.
The stolen briefcase included documents containing customer account details
which the employee used when liaising with mortgage intermediaries.
The personal data contained mortgage account information only. It did not
include any bank account details, Pins, passwords or details of financial
transactions, the bank stressed.
Around 1,800 of the relevant customer records included name, address,
mortgage account number and balance. The remainder of the records listed the
customer's name, mortgage account number and approval status.
Halifax could face action from the
Financial
Services Authority, which fined
Nationwide
almost £1m last month after the
theft of an
employee's laptop exposed major security flaws.
"We are very sorry for any inconvenience or upset we may have caused our
customers. Lessons have been learnt, and we are reviewing our procedures as a
matter of urgency," said Shane O'Riordain, general manager for group
communications at Halifax.
"We have taken immediate steps to protect our customers. The relevant
authorities were promptly told about what had happened. We are writing to all
13,000 customers today to inform them about this incident, to apologise, and to
tell them what we are doing about it."
Jamie Cowper, a marketing manager at data encryption firm
PGP
Corporation, said: "While this is a situation that clearly could have been
avoided, Halifax should be commended for being so upfront and notifying its
customers immediately.
"But in this day and age, when we have a multitude of devices better equipped
to store such information, should companies still be storing confidential
details in paper format?"
Andrew Pearson, executive vice president at IT consultancy
Workshare,
warned that high profile data leaks are becoming increasingly common.
"While technology is often blamed for data leakage, the Halifax case
highlights the risks of taking any information outside a company, whether on a
portable device like a laptop, or a more traditional briefcase.
"These kinds of leaks can be incredibly damaging, not just for the people
whose details have been lost or stolen, but for the business in terms of damage
to reputation and breach of regulations.
"Companies need to put measures in place to ensure that corporate and
customer details are always protected."
Do you agree?
Have your say on this article