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ICO dishes out first Data Protection Act fines

by Sarah Griffiths on 24 November 2010, 11:59

Tags: General Business

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Breach blowout

The Information Commissioner's Office (ICO) has dished out hefty fines to a council and a firm that breached the Data Protection Act.

Hertfordshire County Council has been fined £100,000 while a Sheffield-based firm called A4e was hit with a £60,000 fine for losing an encrypted laptop with thousands of people's details on it, the BBC reported.

The council was reportedly fined after it accidently sent two faxes containing personal information about a child sex abuse case and care details to the wrong recipients.

The commissioner, Christopher Graham was given the go-ahead to fine companies for data protection breaches in April and these are believed to be the first penalties given out, reportedly intended to ‘send a strong message' to firms handling data.

Hertfordshire County Council's mistakes happened in June when employees in the childcare litigation unit reportedly sent a couple of sensitive faxes to the wrong people and the council reported the accidents to the ICO.

The first fax was apparently intended for a barrister but ended up in the hands of a member of the public, forcing the council to get a court injunction to stop the leak of any faces of the county case or the data breach itself.

Then under two weeks later a second fax reportedly destined for Watford County Court but sent to another barrister unconnected with the case containing domestic violence records, conviction details of two people and information on the care of three children. The penalty was partly given as the ICO decided that council did not take appropriate measures to stop a second breach occurring.

Graham told the Beeb: "It is difficult to imagine information more sensitive than that relating to a child sex abuse case. I am concerned at this breach - not least because the local authority allowed it to happen twice within two weeks."

A spokesman for Hertfordshire County Council reportedly said: "We are sorry that these mistakes happened and have put processes in place to try and prevent any recurrence."

Meanwhile, A4e's breach also occurred in June when an unencrypted laptop was stolen from an employee's home with 24,000 people's information that had used community legal advice in Hull and Leicester on it. The firm reportedly offers information on starting a business.

The company reported the incident to the ICO and contacted the people whose data had been stolen but the ICO reportedly said A4e did not ‘take reasonable steps' to  protect the data in the first place.

Graham said while less shocking than the council's breach, the situation "warranted nothing less than a monetary penalty as thousands of people's privacy was potentially compromised by the company's failure to take the simple step of encrypting the data".

"These first monetary penalties send a strong message to all organisations handling personal information - get it wrong and you do substantial harm to individuals and the reputation of your business. You could also be fined up to half a million pounds," he warned.

Andrew Dutton, the chief exec at A4e, told Auntie: "We acted very swiftly after the incident in June, including making a voluntary report to the ICO. We alerted all customers, partners and relevant authorities affected and continue to update them. This incident occurred as a result of a breach of our security procedures. It also came at a time when A4e was rolling out a new, robust, company-wide set of security controls and procedures."



HEXUS Forums :: 7 Comments

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About time.
I know a lot of government areas need to have a great kick in the back side when looking at DPA but i really dont see how fining them is going to help? I presume im wrong but surely the amount of time and effort of making a report saying they are indeed in breach of this and need to pay up is costing the tax payer more money? And if you think about it, we are just being fined ourselfs as thats our tax money right?
Hicks12: My thoughts exactly. Punitive measures should involve firing whoever is responsible. Nobody in the government is going to care about fines (unless it comes out of their own pocket). But threatening their cushy little number is far more effective.
Indeed. Fining the public for losing the public's data, is quite retarded. I'm guessing the commissioner doesn't have the power to fire or fine specific people :p
Get protection – before it’s too late

It was announced earlier this month that the ICO would issue its first fine in November. Since then, a number of companies have fallen victim to large fines. A question that springs to mind is whether or not these companies are actually the worst offenders or were just in the wrong place at the wrong time.

Although the companies mentioned in the article did in fact breach the data protection act and were right to be fined, other firms have been let off with warnings this year for much worse – is this just the ICO flexing its muscles and scaremongering? It seems very convenient that a public and private sector firm were fined at the same time just before the end of the month. Who will be next? It could be anyone and companies, both public and private need to make sure their data is protected.

Sensitive information is often stored on the hard drives of endpoint systems and on removable media. Organisations need to ensure that this data is persistently protected and one way of doing this is via encryption. The loss of one of those systems or media could expose corporate information, personnel records, government secrets, or intellectual property, producing disastrous effects for organisations. Encryption is transparent and there is no disruption to business operations, performance, or the end user experience.

When sensitive data on endpoints is secured organisations can focus on other areas. Data needs to be fully protected or the next example made by the ICO could be for the full £500,000.

Gary Clark, Vice President EMEA, SafeNet