When personal data goes missing it’s just not good enough for a firm to simply write to customers saying “sorry, we have lost your personal data and here’s a website where you can learn about how you are at risk of identity fraud or theft if the data falls into the wrong hands. Read article Are consumers at risk as more Personal data goes missing?
This is it what Welcome Finance and Shopacheck have done following the loss of two tapes containing such data. If they have fallen into the wrong hands then this is a major concern as identity fraud is one of the fastest growing crimes in the UK, so what more should they be doing about it?
I looked at the Shopacheck and the Welcome Finance websites today and there is nothing about the data loss so any new customer looking at the site will be unaware of their problems.
According to one Shopacheck customer who has been in contact with me, the lost data contains names, address and dates of birth, telephone numbers and payment records. It seems that she, like all Shopacheck customers, and I suspect those of Welcome Finance, are being referred to a website www.identitytheft.org.uk and my initial thought was, so far so good. But then the website mentions quite a lot about fraudsters and how you can be targeted if you have been a bit relaxed with your data but it could do more to promote and explain better how the consumer can get increased protection if they sign up to CIFAS (Credit Industry Fraud Avoidance System) or a credit agency.
My informant also said that she had previously given Shopacheck her National Insurance number and in my book that’s more or less everything a fraudster needs to start cloning someone’s identity. We are not talking about a low number of consumers here - 1.4 million could be at risk!
In my view it would be better for these two firms, and any other organisation come to that which loses data, to be made to pay for a year’s subscription for each customer to CIFAS and to membership of one of the credit reference agencies that sends an alert if the credit file has been accessed.
So apart from having to post presumably 1.4 million second letters at a cost of £504,000 do these two firms have the money to pay for this, and should they? I say yes to the latter. A free helpline, on 0800 8406 563, has been set up for customer.
If you are worried about identity fraud, and I would be in this case, then see our simple do’s and don’ts to help protect yourself, which can be found here.
