Companies fail to protect sensitive data

UK consumers’ confidential information isn’t safe in the hands of many companies, new research has found.

The results of data released at the start of the annual National Identity Fraud Prevention week found that 97 per cent of employees who took part in the study believe their company fails to protect customers’ identities.

The study of more than 3,500 people in Europe (1,500 in the UK) found that only around six in 10 companies have a clear policy on handling sensitive documents. The result is a third of all employees who responded to the survey admitted to throwing documents containing personal or sensitive information into the bin without shredding them.

But the research, complied using data from the National Fraud Authority and office supply firm Fellowes, also found too few consumers take active steps to protect themselves. Identity fraud is on the rise and costs the UK around £1.2bn a year.

The latest figures from CIFAS, the UK’s Fraud Prevention Service, show that nearly 60,000 people in the UK have fallen victim so far this year - a 36 per cent increase when compared with the first nine months of 2008.

Yet despite serious concerns, many consumers may not be aware that their identity has been stolen - until they face serious problems such as being refused a mortgage or loan. This is because only 54 per cent of those surveyed check their statements regularly.

Just over four in 10 shred their personal documents and nearly seven in 10 don't report lost or stolen documents.

The aim of the week (12-18 October) is to encourage businesses and consumers to take action now, ensuring that ID fraud prevention is practised with vigilance at home and in the work place.

The message from the campaign is that until this is done, instances of identity fraud will to continue to increase, leaving more victims in its path.

To help companies the organisers have published a 28-page guide for businesses to launch a dedicated online resource centre. This outlines the risks and offers tips on how to keep corporate data safe, and advice on how to overcome a breach should one occur. The free booklet can be downloaded from the campaign’s website or by calling 00800 1810 1810.

Consumers can get advice from the CIFAS or the E-victims consumer help website on how to protect themselves and what to do in case of a problem.