British businesses face a rising risk of fraud; hence the importance of secure data management and destruction in avoiding financial and reputational losses, says a trade body.
Anthony Pearlgood, pictured, the chairman of the Information Destruction Section of the British Security Industry Association, says it’s important to remember that if confidential information does fall into the wrong hands, it not only causes problems for certain individuals or businesses but there is also the time and inconvenience involved in contacting the authorities and sorting out paperwork once a security breach has occurred. Moreover, as recent KPMG research suggests, data breaches often occur from inside an organisation, meaning it is important that staff are vetted well enough before gaining access to sensitive information.
He says: โIn addition, data breaches carry with them fines and bear financial costs to organisations. In 2010, the powers of the Information Commissionerโs Office (ICO) were extended, allowing it to issue penalty fines of up to ยฃ500,000 for breaches of the Data Protection Act. Moreover, a UK study sponsored by data protection firm PGP Corporation highlights how, in 2010, each individual record lost cost UK organisations an average of ยฃ71.
Anthony adds: โOnly a small fraction of organisational waste paper and data processing products such as hard drives, CDs, memory sticks and DVDs are destroyed annually by professional firms. By far the majority of such material continues to be disposed of via municipal refuse collection or waste paper reprocessing. Neither method generally involves any kind of secure handling, however it is not uncommon to find much confidential data included amongst general waste, becoming a significant cause of avoidable risk. It is not surprising in these circumstances that the rubbish bin is a regular source of prosecutions under the Data Protection Act, just as it has long been a core element of the private detectiveโs trade.โ
The section members argue that institutions of all sizes should take extra precaution when destroying information, regardless of the material – whether it is paper documents, computer hard drives or even staff uniforms. The careless disposal of data often enables criminals to steal identities or conduct fraudulent transactions without anyone noticing.
Such are the consequences of careless disposal of sensitive waste, it is important for organisations to ensure that only reliable security providers are given the responsibility to handle such data, the trade body warns. Members of the BSIAโs Information Destruction section securely destroy confidential information, including paper, DVDs and computer hard-drives. The section members also destroy items that could potentially cause problems if they fall into the wrong hands, such as branded products and uniforms, and already have extensive experience supplying solutions to a wide range of customers.
Again this year sees the BSIAโs Information Destruction Exhibition and Conference, a dedicated summer event bringing together data destruction people with suppliers to the industry, facilitating discussion and debate around emerging trends and new technology.
Anthony Pearlgood adds: โAt a time when data breaches and effective disposal of information are becoming increasingly newsworthy, it is important for the whole of our industry to stay one step ahead of developments in technologies and processes, and understand the requirements and concerns affecting our supply chain.
โThis commitment to best practice enables us to help our customers at a time when their businesses are most at risk from fraud. Almost any kind of personal information is valuable to criminals, whether it is residentsโ records, financial reports, payroll information or personnel data. The unlawful use of such information contributes to an explosion of identity theft crimes, which allows criminals to obtain goods, credit or services in someone elseโs name and could put the institution, customers, or even suppliers, at risk.โ
The BSIA provides an online source of information and guidance for consumers looking to reduce the risk of fraud they face. This can be accessed at http://www.bsia.co.uk/preventidfraud
