A common feature of the digital world in which we live is frequent reports about large multi-national organisations and data breaches. Companies and organisations now hold a vast amount of personal data about their customers and data breaches can have a serious impact on the reputation of an organisation.
It will be remembered that government departments are not immune to these pressures. Back in 2007 HM Revenue and Customs lost computer disks containing confidential details of some 25 million child benefit recipients. At the time HMRC said it did not believe that the records (including names addresses dates of birth and bank accounts) had fallen into the wrong hands although how they were able to make this assertion is unclear.
Since 2007 the risk of computer hackers and fraudsters accessing digital records of organisations has increased vastly.
The Information Commissioners Office (ICO) is a public body which reports directly to parliament and has responsibility for upholding information rights in the public interest.
Recently the Information Commissioner commissioned a YouGov Poll to assess the public's attitude to data breaches. The poll showed that 20% of people would definitely stop using a company service if they were aware of a data breach; 94% of those polled indicated that it was very or fairly important that their information was not shared with other companies and 8/10 people would carefully consider whether to give their business to an online company which was known to have prevented security breaches in the past.
It is worth reminding organisations that there is a fine of up to £500,000 for breaches of the Data Protection Act. However the negative impact of poor press coverage relating to data breaches can be an even greater deterrent for companies.
If you run a business it is important for you to understand the data protection obligations which are imposed on you.
To discuss this or other business related issues contact us.