Data losses confirm need for robust identity verification

Investigation by the BBC has found that the data of four million people was lost by government departments in the year to April.

The biggest reported data loss case, was reported in January, when the Ministry of Defence lost an unencrypted laptop containing 620,000 personal records; including bank account and national insurance numbers. Other data losses have been reported by the Home Office, Ministry of Justice and the Department of Transport.

The four million figure only includes data lost by government departments, and does not include other recently publicized data losses such as data lost by Banks and Building Societies and other organizations. In February last year, Nationwide were fined £980,000 by the FSA for losing a laptop containing 11million customer records.

Colchester University Hospital sacked a member of staff this month, after a disciplinary hearing heard that the staff member took an unsecured laptop containing several thousand patient details on holiday; the laptop was subsequently stolen. Virgin Media have also had to contact 3,000 customers whose details were burnt onto a CD and then lost.

The loss of data means a higher risk of identity fraud, as more and more private information is at higher risk of falling into the wrong hands. Identity verification can be a useful tool in verifying that a customer is really who they say they are, and when multiple characteristics are verified can defend against a fraudster with stolen data but not a complete picture of the stolen identity.