Banks Urge Customer Alertness After Benefit Data Loss
On the 20th November 2007, the UK Chancellor Alistair Darling announced that 25 million sets of personal data had been lost. Banks, as well as building societies, have now responded to the situation by stressing the need for customers to be on their guard. Customers are being advised to keep a watchful eye on their accounts, and ensure that they inform their bank of any transactions outside the norm, or any other movements considered suspicious.
No evidence exists to link the lost data with fraudulent activities.
In line with the banking code, however, reimbursements would be made to customers unfortunate enough to be victims of fraud.
The majority of banks have stated that, since yesterday's announcement, inquiries have increased in volume, and more people are visiting their websites.
Banks Act to Reassure Concerned Customers
Bank employees have been advised to point worried customers in the direction of HM Revenue and Customs, which operates a specific helpline. However, away from the redirection, reassurance figures prominently.
"The risk to customers is extremely low" - a spokesman from the Nationwide asserted.
The two lost discs at the heart of the issue contain information including the names, addresses and bank details of all families receiving Child Benefit. However, the banks are adamant that such data would be insufficient for criminals intending to hack into accounts.
"It is a serious breach," a Lloyds TSB spokesman highlighted, "...but fraudsters would need lots of other personal information to be able to get through all the other security layers that are in place."
He added: "From our perspective, there's nothing to suggest there's been any increase in suspicious activity."
Customers Urged to Continue Shredding Documents as Usual
Within the main message urging for customer vigilance, banks are also advocating the upkeep of usual data protection protocol - measures including shredding statements and receipts, and safeguarding pin numbers and password information.
"Our advice is that customers should be vigilant," HBOS's Mark Hemingway stated.
"The bottom line is you are protected under the banking code in the unlikely event that any fraud is carried out, but there are things you can do to protect yourself. Monitor your account carefully, and if you have a password which involves a date or birth, or any of the other information which may have been lost, then change it."
At Barclays, the data loss has prompted a review of its own security procedures. A spokesman from the bank detailed: "We have briefed staff to be extra vigilant, and will be asking customers for additional information as well." He added: "Obviously we won't say what those extra measures are, but we are asking people to bear with us, as we take all steps to minimise the risk to customers."
Banks Urge No Suspicious Account Activity Since Data Loss
All banks, as well as Apacs, urge that no evidence exists that the data loss has resulted in suspicious account activity in respect of any customers. However, the situation is under very close scrutiny.
"Across the industry we have a robust and comprehensive monitoring system," a spokesman from Lloyds emphasised, adding: "a range of additional measures in terms of surveillance has been put in place."
Customers worried about the prospect of identification fraud can contact Equifax, Experian or Call Credit.
Source - Security International's Current Affairs Correspondent
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