Nationwide reveals data theft to customers

Nationwide building society customers learned over the weekend that they could be at risk of identity theft after an employee's notebook computer was stolen.

The computer which contained confidential client information about 11 million customers, was taken during a domestic burglary three months ago. However, the theft has only just been revealed.

Chief executive Philip Williamson said the notebook PC did not contain sensitive information such as PINs or passwords, and because it was security protected any customer information on it couldn't be used on its own to perpetrate identity theft.

He is reported to have said: "The stolen laptop can't be used on its own to perpetrate identity theft. There is no chance of any customer suffering any financial loss on their accounts."

But consumer and safety groups are not so confident. They point out that if sensitive account information was stored it could be used by identity thieves and used to take out credit cards or loans in Nationwide customers' names.

Andrew Goodwill, managing director of security company, Early Warning, said he believed the incident was probably an opportunist theft and therefore the data would be of little use to the criminal. However, in the right hands the data could be used for social engineering attacks, phishing and identity theft.

He said: "Why did this employee need all this data on a laptop and why has Nationwide just made this incident public when their excuse was they didn't want to alarm the public before?"

The National Consumer Council also slammed Nationwide for the length of time it has taken the building society to inform its customers.

A representative said: "It is very wrong that they have been so slow in coming forward; because there is no legal obligation for them to inform their customers, they probably hoped it would just go away."

She also said the theft highlights the issue that companies and organisations need to be far more aware of keeping their customers data safe. The NCC will be discussing this issue next week with organisations.

Nationwide is writing to all its customers and in the meantime the Financial Services Authority is continuing to investigate the incident. The Office of the Information Commissioner said it was monitoring the situation.