FSA warning on personal data security

by Gill Montia

Story link: FSA warning on personal data security

The Financial Services Authority (FSA) has warned UK financial institutions that they must do more to ensure that customers’ personal data does not fall into the hands of identity thieves.

The regulator has recently reviewed the data security systems of 39 firms including banks, building societies, insurance companies and financial advisers.

One case has been referred for enforcement action and the survey also revealed that some companies still allow laptops to contain personal data that has not been encrypted.

The FSA has stated that this is unsatisfactory and evidence that many firms still do not take the risk of identity theft seriously.

In recent months the regulator and has been taking an increasingly tough stance with the perpetrators of lax security.

In December of last year, Norwich Union was fined £1.26 million for failing to protect its customers

However, today’s report suggests that firms seemed more concerned about the adverse media coverage that accompanies such a penalty than safeguarding their customers.