Wednesday, November 21, 2007

PostHeaderIcon Breaking News: Data Blunder in the UK as CD containing citizen's data got lost

Sky.com - Millions of people are facing the threat of identity theft after personal details of nearly half the population were lost in Britain's worst data protection breach.

Two compact discs containing names, addresses, dates of birth, child benefit numbers, national insurance numbers and bank or building society account details of some 7.25 million families have gone missing.

The "catastrophic" blunder could affect around 25 million people and means the details of virtually every family in the country with children under the age of 16 have been lost.

Prime Minister Gordon Brown has ordered a check of data security at all Government departments in the wake of the loss.

Speaking to MPs at Prime Minister's Question Time, he insisted there was no reason for Alistair Darling to resign as Chancellor, saying he had done "an excellent job" in the role.

However, the breach has already prompted the resignation of HM Revenue and Customs chairman Paul Gray.

The Government said a junior official sent the entire child benefit database from HMRC HQ in Tyne and Wear to the National Audit Office in London on October 18.

In breach of the agency's procedure, the package was not even posted recorded delivery through contracted courier TNT.

It never arrived at its destination.

The Metropolitan Police is now leading the hunt for the package, while Mr Darling has ordered a probe into security procedures at HMRC.

Former Scotland Yard Fraud Officer Tom Craig told Sky News he dealt with a case recently where the criminals were paying $5 for each person's information.

"If everyone's information in this case was sold it'd fetch over £60m, and then you have to take into consideration the fact the average victim of fraud loses £15,000," he said.

"We're talking potentially billions of pounds of fraud."

TNT has told Sky News it could not be certain the discs had actually left the building from which they were supposed to have been sent.

Mr Darling told Sky News: "I unreservedly apologise. It should not have happened. It shouldn't be possible."

He added procedures had been put in place to prevent such leaks - but had apparently been ignored.

The Chancellor also said there was no evidence the discs had fallen in to the wrong hands - with banks on alert to watch out for fraud.

"I don't for one moment deny that this is a very, very serious problem," he continued.

"However, we now have to deal with it.

"We will continue to do everything we possibly can to reduce the risks, and crucially make sure this sort of thing never happens again."

Sky.com

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