This site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.X

Regulator probes security lapse at Nationwide

Share this article:

The Financial Services Authority (FSA) is investigating a security lapse at Nationwide building society after a laptop computer containing sensitive customer data was stolen from an employee's home.

Both the FSA and Nationwide have refused to say exactly what was on the laptop, which was taken in a burglary in August. However, the building society confirmed it held customer information, but maintained that this did not include pin numbers, passwords or transaction details. According to Alan Oliver, head of external affairs at Nationwide, the device contained "limited customer information for market research purposes".

Nationwide insists that victims of identity fraud would not suffer financial loss, as the building society has a policy of reimbursing money stolen. A spokesperson said: "There has been no loss of money, and no chance of any customers suffering financial loss. If they are the innocent victim of fraud they will not lose out. The information on its own cannot be used for identity fraud."

Nevertheless, it's claimed that criminals could combine the personal data stolen with other customer information and use it for identity fraud.

It's reported that as a result of the theft Nationwide has clamped down on customer data being carried on staff laptops and has begun writing to all of its 11 million consumers outlining the security measures they need to take.

Although the building society was keen to play down the severity of its security lapse, the banking industry regulator - FSA - is probing the incident.

"We're continuing to discuss with Nationwide the incidence of a loss of data," said a FSA spokesperson. "Our principle concern is to minimise the risk to consumers."

Gary Clark, VP of EMEA, SafeNet commented: "Once again, a laptop containing confidential consumer data is stolen, and the need for stricter security for mobile devices is highlighted once more."

"‘Random thefts' or loss of laptops and other physical assets inevitably occur, however, if access to the data on these stolen items is protected, this information will remain protected and out of the reach of criminals."

Share this article:

SC webcasts on demand

This is how to secure data in the cloud

Exclusive video webcast & Q&A sponsored by Vormetric

As enterprises look to take advantage of the cloud, they need to understand the importance of safeguarding their confidential and sensitive data in cloud environments. With the appropriate security safeguards, such as fine-grained access policies, a move to the cloud is as, or more, secure than an on-premise data storage.

View the webcast here to find out more

More in News

Microsoft warns on yet another zero-day security flaw

Microsoft warns on yet another zero-day security flaw

Microsoft has warned Windows users about a zero-day security issue with malicious PowerPoint documents being emailed to recipients. The software giant is working on a patch for the problem.

Google launches FIDO-compliant 2FA USB key for Chrome and Gmail

Google launches FIDO-compliant 2FA USB key for Chrome ...

Google has souped up its two-factor authentication (2FA) login process with the launch of Security Key, a physical USB that only works after verifying the login site is truly a ...

Evolving TorrentLocker ransomware generating big money

Evolving TorrentLocker ransomware generating big money

The TorrentLocker ransomware has returned with a vengeance and is starting to bring in big money for its operators.