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HSBC companies slapped with US$5M fines over data breaches




HSBC companies slapped with US$5M fines over data breaches
HSBC companies slapped with US$5M fines over data breaches



http://www.zdnetasia.com/news/business/0,39044229,62056295,00.htm 

By Jo Best
Special to ZDNet Asia
July 23, 2009 

Three HSBC companies have been hit with fines after the financial 
services watchdog found they weren't doing enough to protect customers' 
data.

The Financial Services Authority (FSA) fined HSBC Life 1.6 million 
pounds (US$2.6 million), HSBC Actuaries 875,000 pounds (US$1.4 million) 
and HSBC Insurance Brokers 700,000 pounds (US$1.1 million)--making a 
total of 3.1 million pounds (US$5.1 million) in penalties between them.

Due to the fact the three firms settled with the FSA, their fines were 
discounted by 30 percent--the original charges totaled 4.55 million 
pounds (US$7.47 million).

The FSA handed down the fines after an investigation found customer data 
was sent without encryption to third parties and via couriers, and left 
in unlocked cabinets and shelves openly.

Staff were also not given proper training over how to spot and deal with 
risks like identity theft, the FSA found.

[...]


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