Security VARs bank on HSBC windfall

Record fine levied on HSBC for failing to protect customer data could boost security sales, resellers hope

Resellers hope the latest data breach headlines – this time involving HSBC – could provide their security order books with a welcome boost.

The FSA has slapped HSBC firms with a record £3m fine for not having adequate systems and controls in place to protect their customers’ confidential details from being lost or stolen.

During its investigation, the watchdog found that large volumes of unencrypted customer details were sent via post or courier to third parties. It fined HSBC Life £1,610,000, HSBC Actuaries £875,000 and HSBC Insurance Brokers £700,000.

Taken together, it is the largest fine the FSA has imposed in such a case. Graham Jones, UK managing director of security VAR Integralis, said the channel could stand to benefit.

“You need a good story such as this every now and again to keep the board focused on security,” he said. “This highlights that security should stay at the top of boards’ agendas.”

Matt Hampton, chief technology officer at VAR Imerja, noted that both the FSA and the information commissioner had recently increased both the frequency and severity of their fines and enforcement notifications.

He claimed this would provide the channel with an opportunity to push removable media security solutions.

“[The HSBC firms] had a policy issued to them from their parent in July 2007 that said they were not allowed to let out unencrypted information – but they had not enforced it technologically,” he said.