[photopress:it_hsbc.jpg,full,alignright]Banking giant HSBC has lost a computer disk containing details of nearly 400,000 customers. The disk contains the names, dates of birth and insurance cover levels of 370,000 people who hold life assurance policies at the bank.
A statement from the bank said, ‘The data disk lost by HSBC contains no address or bank account details for any customer and would therefore be of very limited, if any, use to criminals.’ And the data was password protected.
None of which will assure any customers greatly. Passwords are relatively easy to crack. The statement by the bank that there was no incriminating information on the disk is less than reassuring.
Note this is NOT the branch of the HSBC in Shanghai nor yet Hong Kong and is it very possible — indeed let us devoutly hope probable — that they have better security systems in place.
How did the disk go missing?
It was sent by Royal Mail courier from the group’s offices in Southampton to the reinsurer Swiss Re at the beginning of February. It is not clear at what stage of the journey the disk went missing. Again, this does not inspire confidence.
HSBC spokesman James Thorpe speaking for the slow learners sitting at the back of the class said, ‘It has got lost between A and B.’
Normally such data is passed by wire link, but, angels and ministers of grace defend us in our our hour of most need, it was not working the day the disk was sent.
The bank has informed the city watchdog, the Financial Services Authority, which may carry out an investigation. If it finds HSBC guilty of lax security, it could face a fine.
This is no light threat. Norwich Union Life, one of Britain’s largest life insurers, was fined 1.26 million pounds (US$2.52 million) last December for exposing its customers to the risk of fraud. That was of a much higher level of sinning than sending data on a disk by courier because the inter-bank link was not working but a fine is still possible.
Source: Windows of China