An online holiday insurance company has been fined £175,000 by the data protection watchdog, the Information Commissioner’s Office (ICO), after what the ICO called IT security failings let hackers access customer records. More than 5,000 customers had their credit cards used by fraudsters after the attack on Staysure.co.uk.
Attackers potentially had access to over 100,000 live credit card details, as well as customers’ medical details. Credit card security numbers, the number on the signature strips on the back of the cards, were also accessible despite industry rules that they should not be stored at all.
The ICO found Staysure had breached the Data Protection Act (DPA) by failing to keep the personal information secure. The company had no policy or procedures in place to review and update IT security systems, and had twice failed to update database software which could have prevented this incident. This left security flaws in the system, some for as long as five years, which hackers ultimately exploited to gain access to customer information.
Steve Eckersley, Head of Enforcement at the ICO, said: “It’s unbelievable to think that a company holding three million customer records did not have the procedures in place to keep that information secure. Keeping personal information secure is a basic legalrequirement. The company’s actions were unacceptable and this penalty notice reflects the severity of the situation.”
He added that the fine should send a clear message to other companies of the importance of proper IT security. The Wilmslow-based ICO can fine offenders up to £500,000. For the ‘monetary penalty notice’ in full visit https://ico.org.uk/.
