HSBC investigates after loss of customer data disc

by Staff, Brand Republic 07-Apr-08, 12:20

LONDON - HSBC Group is on the hunt for a computer disc that carries the details of 370,000 customers, after it was lost while being sent by courier.

The disc carries details of customers' dates of birth and levels of life insurance cover and whether or not they smoke, but no address or bank account details. It was lost four weeks ago.

HSBC now faces the prospect of an investigation by the Financial Services Authority. Because the details are password protected and do not include address data, HSBC has said that customers' potential exposure to fraud is limited. However, it plans to write to everyone whose name is on the disc to explain what has happened.

A spokesperson said: "We would like to apologise to life assurance customers for any concern this may cause them. Each customer will be contacted shortly and a thorough investigation into this matter is underway."

Last December, the Financial Services Authority fined Norwich Union Life £1.26m for not having effective controls in place to protect clients' confidential information, after customers fell victim to a £3.3m identity fraud. Nationwide was also fined by the FSA in February 2007 after a laptop carrying customer details was stolen from the home of an employee.