by: Sonny Zulhuda
In my last post I made note about why banks should or must care to protect the personal data with them. In this post I just want to put that note in real perspective, learning from real cases and incidents involving major banks in the world.
First, it was reported that Citigroup breach exposed data on 210,000 customers (here for the full report)
Citigroup admitted Wednesday (June 8th, 2011) that an attack on its website allo
wed hackers to view customers’ names, account numbers and contact information such as email addresses for about 210,000 of its cardholders in North America. Although hackers may have not gained complete information on cardholders, the contact information is enough for scammers to try and elicit more information through targeted attacks. The email addresses, for example, could be used to send “phishing” messages asking for other sensitive information which could potentially give identity thieves enough to start committing fraud.
Second, you’ll see how Data breaches lead to massive fines for three HSBC firms (here for the report)
Three HSBC firms have been fined more than £3 million by the Financial Services Authority (FSA) for failing to secure customer data. The FSA claimed the three firms sent large amounts of unencrypted data – often on discs sent via the post – and staff were untrained on the issue of identity theft. The FSA said that, in April 2007, HSBC Acutaries lost a floppy disk in the post that contained 1,917 pension numbers and addresses. And, in February 2008, HSBC Life lost an unencrypted disk holding data on 180,000 policy holders – also in the post.