Bladewatch.com

http://www.finextra.com/news/fullstory.aspx?newsitemid=21729

The unencrypted tape, containing data on policyholders, including bank account and credit card information for some, went missing in August 2008.

It was lost by the firm’s South African business during a routine transfer to a data storage centre but a lack of proper reporting lines meant the issue was only discovered by the UK unit a year later.

Imposing its biggest ever fine on a single firm for data security failings, the FSA says Zurich UK failed to take “reasonable care” to ensure it had effective systems and controls to manage the risks relating to the outsourcing arrangement with the South African business.

An article to highlight/remind us of the importance of managing user data both in terms of protecting our customers and in preventing unnecessary loss, disruption to service or fines as a result of breaching regulations. I wonder going forward if cloud services such as backup or data hosting for remote working might bridge the gap in offering a secure platform for business use whilst meeting the cost/regulation issues, everyone wants secure data, effective backups and to meet regulatory requirements up until the bill arrives or until it results in delays to processing or earning revenue.

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