The Month: Bank of Scotland loses disk | SC Media

The Month: Bank of Scotland loses disk

June 27, 2007

In the latest large-scale data breach, the Bank of Scotland has lost a disk containing personal information on 62,000 of the bank's mortgage customers. The information was not encrypted.

The data was lost after it was sent to a credit reference agency, whichultimately reported the information missing. The bank, part of HBOS,claims the disk was lost in the post, not stolen, and would normallyhave been encrypted.

As public awareness of data breaches rises, calls for US-style breachlegislation, wider use of database encryption and raised securityawareness are increasing.

Phil Dunkelberger, president and chief executive of PGP Corporation,said: "Data is becoming a currency, and proposed EU regulations onbreach notification are making more and more people take a good hardlook at their data security situation."

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