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Nationwide fine for stolen laptop | Nationwide fine for stolen laptop |
(10 minutes later) | |
The Nationwide Building Society has been fined £980,000 by the City watchdog over security breaches. | The Nationwide Building Society has been fined £980,000 by the City watchdog over security breaches. |
The fine follows the theft of a laptop from a Nationwide employee's home which contained confidential customer data. | The fine follows the theft of a laptop from a Nationwide employee's home which contained confidential customer data. |
The Financial Services Authority (FSA) found security was not up to scratch after the man had put details of nearly 11 million customers on the computer. | |
The FSA also found that the Nationwide did not start an investigation until three weeks after the theft occurred. | |
Financial crime | Financial crime |
The Nationwide claimed that the information on the laptop could not have been used for identity fraud as there were no PIN numbers, passwords or account balance information on it. | The Nationwide claimed that the information on the laptop could not have been used for identity fraud as there were no PIN numbers, passwords or account balance information on it. |
The FSA will not reveal exactly what was on the laptop as it has still not been recovered. | |
However, it appears it may have contained names, addresses and account numbers. | |
As a result, the building society's customers had been exposed to the risk of financial crime. | |
"Nationwide is the UK's largest building society and holds confidential information for over 11 million customers," said Margaret Cole, director of enforcement at the FSA. | "Nationwide is the UK's largest building society and holds confidential information for over 11 million customers," said Margaret Cole, director of enforcement at the FSA. |
"Nationwide's customers were entitled to rely upon it to take reasonable steps to make sure their personal information was secure," she added. | "Nationwide's customers were entitled to rely upon it to take reasonable steps to make sure their personal information was secure," she added. |
The theft | |
The FSA said its investigation had shown that the building society had not known that the laptop contained any confidential customer information at all. | |
The laptop was stolen from the home of a long-standing and trusted employee of the building society who needed access to the data. | |
However, despite reporting the theft promptly, he did not tell the Nationwide what was on it and then went on holiday. | |
It was only three weeks later that he told his employer that customer information had been lost, prompting the building society's investigation. | |
The theft became public last November. | |
The Nationwide then wrote to all its customers apologising for the security breach. | The Nationwide then wrote to all its customers apologising for the security breach. |
Its chief executive, Philip Williamson, repeated that apology. | Its chief executive, Philip Williamson, repeated that apology. |
"I wish to emphasise that there has been no loss of money from our customers' accounts as a result of this incident," he said. | "I wish to emphasise that there has been no loss of money from our customers' accounts as a result of this incident," he said. |
The building society would not say if the employee in question had been sacked or otherwise disciplined. |