Nationwide Building Society cops massive fine

The FSA said an investigation that followed the theft of a laptop from a Nationwide employee's home last year revealed that the building society had failed to take effective steps to secure the details it held on its customers, exposing them "to an increased risk of financial crime".

A spokesperson for the authority said Nationwide's customers, "were entitled to rely upon it to take reasonable steps to make sure their personal information was secure".

Other firms should take note, she warned.

It seems he Nationwide agreed to settle at an early stage of the FSA's investigation to qualify for a 30 per cent discount on the fine otherwise it would have been forced to cough up some £1.4 million.

The building society said it has now commissioned a "comprehensive review of its information security procedures and controls".

Chief executive Philip Williamson said in a statement: "We have extensive security procedures in place, but in this isolated incident our systems of control were found wanting. We have made changes to fill the gap and improve our procedures further." µ

L'INQ
FSA