UK business owners had a wakeup call in April 2010 as tough new penalties for data security breaches came into force.

Following several high profile cases, the government handed the Information Commissioner’s Office (ICO) the power to fine companies up to £500,000 for serious breaches, which it hopes will serve as a deterrent.

Businesses forced to reassess network security

The Information Commissioner may have pledged to take a “pragmatic and proportionate” approach to issuing fines but these new powers will still force thousands of UK firms to reconsider the way they record, store and backup confidential customer data.

When serving monetary penalties, the ICO will carefully consider the circumstances, including the seriousness of the data breach, the likelihood of substantial damage and distress to individuals, whether the breach was deliberate or negligent and what reasonable steps the organisation has taken to prevent breaches.
 

ICO is prepared to use tough new sanctions

The ICO welcomed this new addition to its overall regulatory toolkit, which includes the power to serve an enforcement notice and the power to prosecute those involved in the unlawful trade in confidential personal data.

Information Commissioner, Christopher Graham, said: “Getting data protection right has never been more important than it is today. As citizens, we are increasingly asked to complete transactions online, with the state, banks and other organisations using huge databases to store our personal details. When things go wrong, a security breach can cause real harm and great distress to thousands of people.

“These penalties are designed to act as a deterrent and to promote compliance with the Data Protection Act. I remain committed to working with voluntary, public and private bodies to help them stick to the rules and comply with the Act. But I will not hesitate to use these tough new sanctions for the most serious cases where organisations disregard the law.”

So there really has never been a better time to review your own network security and policies regarding the collection, storage and access of client data. For more information, call Delta Comtech today on the numbers below.