Zurich UK Fined £2.27m in Data Archiving Mishap, Lessons Learned
Zurich Insurance fined £2.27m for loss of customer data.
How could the Cloud have helped?
At Sonian we love that it is a busy and exciting time in the cloud computing and data archiving industries. Cloud powered hosted solutions are changing the game for individuals, businesses and entire industries. This entire post could be about the way cloud computing can revolutionize the music and movie industries or the way it will continue to shape B2B commerce. However, the news of a massive mishap for one company in Europe is the focus today. The situation at the UK division of Zurich Insurance serves as a not-so-subtle reminder to discuss the importance of business data storage, security and systems.
Zurich Insurance will reportedly be fined, by the Financial Services Authority, £2.27m for the loss of detailed personal data of over 46,000 customers, marking the largest fine ever levied on a firm concerning data security. The data, on an unencrypted back-up tape, was lost during a scheduled transfer to a storage center in South Africa. “Zurich UK failed to take reasonable care to ensure it had effective systems and controls to manage the risks relating to the security of customer data…” said an FSA statement.
FSA Director of Enforcement Margaret Cole noted, “Firms across the financial sector would do well to look at the details of this case.” Any company in every sector would do well to know the details of this case, as we at Sonian understand. Cloud powered data systems, as is often the case, could have simplified Zurich UK’s data systems and security, potentially saving the company at least £2.27m. This story illustrates the importance of paying particular attention to the systems and security of business data management.
While news of a financial levy for data mismanagement may not be the most exciting news out there, it does stand as an example for those who follow: backup your data in the cloud, and reduce the risk of physical data loss.
Webinar on Cloud Security hosted by Steve Riley, Cloud Computing Strategist for Amazon Web Services, and Greg Arnette, Founder and CTO of Sonian
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