Government loses your personal data

(22-11-07) - Hundreds of thousands have already changed their PIN numbers and millions more are scrambling to switch the bank and building society accounts after their personal and financial details were lost by the Government department responsible for tax and benefits.

HM Revenue and Customs admitted yesterday that it had lost CDs containing the names and addresses, dates of birth, child benefit numbers, national insurance numbers and even bank or building society account details of 7.2 million families receiving child benefit.

Ministers were shocked to hear that the discs - containing information on a total of around 25 million individuals - had been lost in the post.

In a clear violation of the department's rules governing the release of sensitive information, a junior official sent the discs to the National Audit Office on 18 October by the HM Revenue and Customs' internal post, run by the courier firm TNT, but they never arrived.

Paul Gray, head of HM Revenue and Customs quit his £198,000-a-year post as one of the country's highest paid civil servants, amid calls for Chancellor Alistair Darling to also stand down.

This is the latest blow for the Chancellor following a difficult summer, and who admitted only 24 hours earlier that tax payers could be at risk in the £24 billion rescue of Northern Rock, the embattled mortgage provider.

Chris Eagle, CreditChoices.co.uk commercial manager, said: "People are continually advised to keep these details secret and safe from fraudsters, so they are right to be concerned now. "Anyone in receipt of child benefit with concerns should take precautions and make sure that they thoroughly check all transactions from their account. It is alsi a good idea to regularly check their credit report to be sure that no cards or loans have fraudulently obtained in their name," he advised.

Call the HM Revenue and Customs child benefit helpline on 0845 302 1444 for more advice.

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