1 million UK identities sold on eBay

by Tina Kells | August 26, 2008 at 09:28 pm
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Preventing Identity Theft
The Royal Bank of Scotland announced Tuesday that a computer containing the banking security details of over 1 million customers had been sold on eBay. The bank stated that an employee of subcontractor Graphic Data had stolen the computer, later listing it for sale on the popular auction site. The UK has been barraged with identity theft concerns in the past year and this latest eBay scandal has only added fuel to the fire.


The computer contained account numbers, passwords, cell phone numbers and signatures. It belonged to MailSource UK -- an arm of Graphic Data, an archiving company that holds financial information for Royal Bank of Scotland, NatWest and American Express.

The security breach became known when the computer's buyer found the information and contacted authorities.

Britain's Information Commissioner's Office has launched an investigation into the incident. Banks in Britain are obligated under the Data Protection Act to secure personal information. But banking and other highly sensitive information is being lost with increasing frequency.


In the past year several companies and government departments in the UK have lost sensitive personal information that was stored on computer hard drives or data storage devices. In answer to growing concerns over lax corporate security practices, last year a UK court levied a fine of almost £1 million against the Nationwide Building Society when a laptop containing private customer data was stolen from the home of an employee.

Other recent scandals in the UK include; a storage device with the personal information of inmates lost by an independent contractor working for the prisons, government files on terrorist tactics left on a commuter train, and a computer with the personal data of potential military recruits stolen from a Navy recruiter's car.

Perhaps the most grievous of the identity losses came last November when tax officials in the UK admitted to losing computer discs containing the personal tax and banking information of 25 million people, putting nearly half the country's population at risk.

In answer to the latest scandal the Royal Bank was quick to reassure customers that it was launching an investigation to learn exactly how the security breach occurred. American Express is also investigating whether or not its customers have been affected by the eBay sale.

In this case the identity information fell in to safe hands; the eBay user who bought the computer alerted both the Royal Bank and eBay to the situation, however, it could have just as easily ended up in criminal hands.

Ebay spokesperson Jenny Thomas stated that the item should never have been put up for auction, while Graphic Data is looking in to how an employee was able to take the computer from the storage facility.


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Resonant Earth
Resonant Earth
flagged this story as Good Stuff

at 21:48 on August 26th, 2008

Tina Kells, I like this story. It's good stuff.

Milieunet
Milieunet
flagged this story as Good Stuff

at 22:27 on August 26th, 2008

Tina Kells, I like this story. It's good stuff.

Where is our privacy gone???

Paschen
Paschen
flagged this story as Good Stuff

at 22:33 on August 26th, 2008

Tina Kells, I like this story. It's good stuff.

gerrypopplestone
gerrypopplestone
flagged this story as Good Stuff

at 04:16 on August 27th, 2008

Tina Kells, I like this story. It's the British disease again!  Everyone who knows something about computers knows:

1) if you trash a computer, MAKE SURE nothing is on the hard disc, ESPECIALLY if it has sensitive material!

2) if you send data (PLEASE NOT THE POST) make sure it is encripted.  Somehow we Brits dont seem to know these basics!

0
Emilio Lizardo

I'd be very suprised, Gerry, if this machine was not encrypted ... the article does not seem to say one way or the other ...

0
Sputnic

Yet more proof that mostly stupid people are in positions of authority. Not necessarily a worldwide phenomenon but definitly a problem here in the uk. Maybe its the rain, maybe its gangsters stealing stuff.

This story was created over 3 months ago, the comment thread is now closed.

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