HSBC handed £3m fine for lax data security

HSBC has been fined over £3m for data security breaches in three of its divisions.

HSBC

HSBC Life, HSBC Actuaries and Consultants and HSBC Insurance Brokers Limited were all penalised by the Financial Services Authority (FSA) for not protecting their customers’ confidential details.

The City watchdog found the three guilty of offences including sending large amounts of unencrypted customer details by post or courier to third parties and leaving confidential information about customers on open shelves or in unlocked cabinets.

In addition, the regulator ruled that staff were not sufficiently trained on how to identify and manage risks like identity theft.

HSBC Life UK was fined £1.6m, HSBC Actuaries and Consultants £875,000 and HSBC Insurance Brokers were penalised £700,000.

The FSA says the firms have taken action to address the problems including contacting the customers concerned, improving their staff training and requiring that all electronic data in transit is encrypted.

Margaret Cole, director of enforcement at the FSA, says the breaches were “very disappointing” and that all three “failed their customers by being careless with personal details which could have ended up in the hands of criminals”.

Clive Bannister, group managing director of HSBC Insurance, says data confidentiality and security is “vitally important”.

“While this is a serious matter, no customer reported any loss from these failures and we are doing everything possible to prevent a recurrence,” he adds.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here