Hefty fines for weak data security
HSBC has been fined over £3 million ($5 million) for data security procedures that fail to meet Financial Services Authority (FSA) requirements.
The FSA said that, in April 2007, HSBC Acutaries lost a floppy disk in the post that contained 1,917 pension numbers and addresses. And, in February 2008, HSBC Life lost an unencrypted disk holding data on 180,000 policy holders - also in the post.
Costly data breaches can be avoided by remotely managing portable data. Not only is the data encrypted, but the device can be programmed to remotely delete the next time it is plugged in. The company has a log file to show the date, time and location where the data was destroyed.