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From April 2010 the Information Commissioners Office (ICO) will be empowered to fine organisations a maximum of £500,000 in the case of a serious data breach. When serving monetary penalties, the Information Commissioner will carefully consider the circumstances, including the seriousness of the data breach; the likelihood of substantial damage and distress to individuals; whether the breach was deliberate or negligent and what reasonable steps the organisation has taken to prevent breaches. |
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The ICO states that these penalties are designed to act as a deterrant and to encourage organisations to take reasonable steps to prevent a data breach such as the encryption of data and storage.
Information Commissioner, Christopher Graham, said: "Getting data protection right has never been more important than it is today. As citizens, we are increasingly asked to complete transactions online, with the state, banks and other organisations using huge databases to store our personal details. When things go wrong, a security breach can cause real harm and great distress to thousands of people......I remain committed to working with voluntary, public and private bodies to help them stick to the rules and comply with the Act. But I will not hesitate to use these tough new sanctions for serious cases where organisations disregard the law." |
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