Bank data breaches probed by info commissioner

Several high street banks could be investigated by the government following reports they dumped customer data, bank cards and PINs in bins outside their buildings.

RBS and subsidiary NatWest are being investigated by the Information Commissioner's Office (ICO) after a member of scamsdirect.com - a group of freelance journalists who expose fraudsters - rummaged in company bins claiming to find bank cards and faxes packed with private information.

Scamsdirect said it found the information, which could easily lead to identity theft, in bins outside bank branches in Hampshire.

Mike Bull from scamsdirect.com told silicon.com: "The reason we took NatWest to the ICO was because they threatened legal action and kept saying it was a one off. We thought they'd say 'thanks for telling us'.

"The informant [about this scam] told us she'd been doing it for 15 years on all banks. The question is why is this happening? It's baffling. The banks tell everyone to shred everything but they don't."

silicon.com Financial Services

Get the latest financial services news straight to your inbox. Sign up for the FS newsletter today!

The ICO said the bank could face "formal enforcement powers", which could mean serving information notices and prosecution, if the claims are found to be true.

It said in a statement: "This issue has arisen with banks before and we would expect them to be actively taking steps to protect their customers' information. It is not enough for them merely to have security procedures in place. They must make sure that those procedures are followed in practice."

RBS issued a statement: "We take the disposal of customer and bank confidential waste extremely seriously and have procedures in place for the secure storage and disposal of confidential information.

"The bags removed by scamsdirect from our Fareham branches, were general waste bags taken from our dustbins outside the branches. We have gone to great lengths to secure the return of the original items to facilitate our investigations."

Bull said he is reporting Barclays and HSBC to the ICO for similar reasons.