< Back to previous page

Firms facing £500,000 data loss fines in fraud crackdown

Published on 14 Jan 2010 under category: legal

Firms in the UK could be at risk of major fraud fines.

New powers given to the privacy watchdog the Information Commissioner's Office could see companies guilty of data loss hit with penalties of up to £500,000.

This ruling, which is seen as a way of fighting fraud crimes, will become law from April 6th, unless there are parliamentary objections.

Christopher Graham, the information commissioner, said: "As citizens, we are increasingly asked to complete transactions online, with the state, banks and other organisations using huge databases to store our personal details.

"When things go wrong, a security breach can cause real harm and great distress to thousands of people."

Issues such as the seriousness of the breach and the distress caused to those involved will be considered when calculating data loss fines.

The news comes shortly after a study by BDO found that white collar crimes, such as fraud, were up by 76 per cent last year.

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.