FSA has fined HSBC Life UK GBP 1.6 million and HSBC Actuaries GBP 875,000, while HSBC Insurance Brokers received a fine worth GBP 700,000. According to a FSA statement, the three companies have not put adequate systems and controls in place to manage financial crime risks and prevent customer data losses on two occasions.
During its investigation into the firms data security systems and controls, the FSA found that large amounts of unencrypted customer details had been sent via post or courier to third parties, while staff was not given adequate training on how to identify and manage risks like identity theft.
The firms have taken a number of remedial actions to address the concerns raised, including contacting the customers concerned, improving their staff training and requiring that all electronic data in transit is encrypted.
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