The cost of lost data
This week saw an announcement from the Information Commissioner’s Office (ICO), alerting organisations to new data protection legislation due to come into effect this April. The new powers will give the ICO the ability to command fines of up to £500,000 if negligence is found to have resulted in a serious data breach. The Commissioner is quoted discussing the thinking behind the new rules: “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.”
The amount of people’s personal data that is held online has risen dramatically over recent years, and the issue of accountability has been seized upon by those worried about the privacy implications this raises. The adoption of cloud computing in particular has raised concerns about the potential loss of control over data that is being held on various servers around the world.
In order to ensure that their customers’ data is fully secure, online businesses should consider the range of process available to guard against leaks. One key industry benchmark is the ISO 27001 standard for Information Security Management, which ensures that the processes involved in protecting data are watertight. Other essentials include advanced firewall and intrusion-detection technology, which play an important role in keeping unauthorised visitors out.
Whilst some may balk at the £500,000 figure announced by the ICO, it is crucial for the development of the internet that web users can share their information, confident that it will remain secure.


