UK Consumers Concerned with Data Theft

We all have something to hide whether it is the account numbers of our bank accounts or credit cards, personal health information, investments, business plans, family histories, and more. Our reputation depends on how well we guard that information. If a database containing the most delicate information about us is breached, the result can be catastrophic.

Now more than ever consumers need to feel that their personal information is secure. However, survey after survey by leading companies that have been created to assure that our personal information stays personal have found that people are overwhelmingly concerned about personal data theft. These surveys have also discovered that more and more people don’t trust business organisations with their sensitive data.

LogRhythm, an independent security information provider with offices in the United Kingdom, the United States, Australia, France, Germany, and Hong Kong recently surveyed 1,000 consumers about the ability of businesses to secure personal data. The study discovered that residents of the UK want to be alerted whenever an organisation experiences a data breach and that they believe that companies that allow a breach to occur should be punished. Moreover, they also said that there should be notification laws that require companies to report violations to their customers.

Sixty six percent of those who participated in the survey favoured laws that would require companies to declare breaches and said that customers should be told immediately when a breach takes place. Currently, European Union laws require that only telecom or ISP firms must notify customers of a breach.

According to CIFAS, the UK’s fraud prevention service, there are an average of 75,000 to 80,000 cases of identity theft a year in the UK. Personal credit information appears to be the most popular target.

Shred-it, a company that offers shredding services of printed documents; and hard drive, data, CD-ROM, computer backup, video and cassette tape, product samples and prototype destruction, has offices in Argentina, Austria, Belgium, Canada, France, Germany, Ireland, Luxemburg, Puerto Rico, South Africa, Singapore, United Arab Emirates, the UK and the United States. It notes that:

• Ã?· Identity theft in the UK costs consumers, banks, retailers, and other businesses Ã?£3.3 billion a year.
• Ã?· When a breach becomes known, damage to the reputation of a business could cost between Ã?£30,000 to Ã?£250,000. For businesses larger than 250 employees, the average total cost is between Ã?£90,000 and Ã?£170,000. For businesses with more than 500 employees damage to reputation could cost between Ã?£30,000 and Ã?£250,000.
• Ã?· A Populus Poll discovered that 81 percent of the British public is concerned with becoming a victim of identity theft.
• Ã?· Identity theft is of greater concern than other crimes like burglary and pickpocketing.
• Ã?· According to Experian, a credit reference agency, it takes an average of 467 days for one to discover that he or she is a victim of identity theft.

The company advises that businesses:

• Ã?· Have clear data protection and document destruction policies
• Ã?· Collect only essential data and obtain consent for the collection of the data
• Ã?· Limit access to sensitive data
• Ã?· Encrypt data
• Ã?· Regularly check the background of employees
• Ã?· Prepare ways to manage a security breach
• Ã?· Create a document management system and be certain that data is stored in a secure and confidential place
• Ã?· Shred all sensitive documents and old files