Royal Mail - So Reliable

HSBC does a HMRC

Writes Dan Drage dan.drage@consumerchoices.co.uk

HSBC took a leaf out of Her Majesty’s Revenue and Customs' book yesterday when they admitted to losing a disc containing details of over 370,000 clients.

The lapse is sure to prompt Financial Service Authority (FSA) action. Last year, leading insurer Norwich Union was fined £1.2 million after allowing fraudsters access to their customer database.

Key financial details pertaining to 370,000 clients were held on the lost disc. HSBC (www.hsbc.co.uk) confirmed it was writing to its life insurance customers to warn them of the loss.

The disc is thought to have been mislaid sometime after January 31st 2008, when the breakdown of a digital transference route led to the disc being sent between offices via Royal Mail.

HSBC did not discover the loss until early last month and admitted yesterday that the disc had not been sent by registered post. A HSBC spokeswoman confirmed that a frantic search for the disc has upturned nothing.

The disc was protected by a password but not encrypted. The bank said that it had found no evidence of fraudulent activity based on the lost information.

Chris Eagle, Commercial Manager at Credit Choices, preaches the gospel of vigilance:

‘HSBC customers should be checking their statements with a fine toothed comb right now, just to be on the safe side. The chance of the loss affecting the financial wellbeing of HSBC clients is negligible, but it’s important for you to report any tiny blemishes or abnormalities to the bank immediately.’