Recession Could Be Causing Upsurge In UK Data Losses

While recession is taking its toll over almost every part of the industry these days, there has been a notable surge in data losses by both private and public companies, with an average one data breach a day been brought to the notice of the information regulator over the past three months.

The significant increase in data loss is triggering fears that relatively fewer organizations are actually looking after customers’ personal information because of the ongoing turmoil in economy.

In the period of three months that ended on December last year, as many as 99 cases of data loss were notified to Richard Thomas, UK’s information commissioner, out of which, private companies accounted for 32 incidences, around one third of the total data loss incidences reported in the given period.

The figure is large as against the total 277 data breaches in the period of last one year that ended on October.

Expressing concerns over the soaring data loss incidences, a spokesman for the information commissioner said in a statement, “If these organisations fail to treat people’s personal information securely, they risk losing the confidence and trust of their customers and clients”.

This has further sparked the debate on data handling methodologies of private and public firms, and put forth the need for some effective measures to secure customers’ information.

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Our Comments

Data breach is a potent threat that organisations, big and small, have to live with. An even more worrying trend comes from former or current employees who can walk away literally with their employers databases on a data storage unit as small as a fingernail (a 16GB microSD card for example). One of the most high profile cases has to be that of Whistle-blower Heinrich Kieber who walked away with thousands of client files from the LGT Trust on CDROMs and caused tax havens to come under scrutiny.

Related Links

Data breaches by public and private companies rise as recession starts to bite

(Telegraph)

UK citizens' private information being lost at record rate

(Times Online)