Standard Life pension customers beware

by Money Doctor Tuesday 06 November, 2007

If you are a Standard Life customer, you should make a strong cup of tea and have a sit down...you might need it.

This is because there is a strong chance you are at risk of fraud thanks to the wonderful skills demonstrated by HM Revenue & Customs (HMRC).

Yes, the clever chaps at HMRC have managed to lose the personal information of over 15,000 Standard Life customers that was on a CD sent from the Revenue office in Newcastle to the company's headquarters in Edinburgh.

In a massive understatement, HMRC and Standard Life have warned those at risk to be "vigilant"!

HMRC routinely sends CDs containing personal data on taxpayers to the insurance companies which hold their pensions.

A month ago a CD containing the names, national insurance numbers, dates of birth and pension plan numbers of nearly 15,000 Standard Life customers was lost by a courier taking it from the Revenue national insurance contributions office in Newcastle to the insurer's headquarters in Edinburgh. A second CD containing data on some customers of an unnamed second firm has also gone missing.

Warning letters have only now been sent to customers by HMRC and Standard Life, five weeks after the data breach occurred.

Five weeks? Who knows what could have happened to the information in that time?

Standard Life's director for customer services, John Gill, said:

"We have no evidence that the disc has fallen into third party hands and we have also been closely monitoring all the accounts and have seen no indications of any suspicious activity."

It's not surprising they have "no evidence that the disc has fallen into third party hands", but then thy have no evidence as to where the disk is anyway!

The Revenue refused to say "on security grounds" whether the information was encrypted, but John Gill said it was "in a coded format that would not be easy to read".

However, the joint letter from the two organisations warned customers that "there is a possibility that your personal data could be accessed by someone other than HMRC or Standard Life."

John Gill confirmed that Standard Life was still receiving discs from the Revenue and was "awaiting further info from the Revenue on how they propose to do this going forward."

This latest incident is the second time in a month that HMRC has admitted losing taxpayers' details. Early in October it revealed that a laptop had been stolen containing data on up to 2,000 people with investment ISAs.

So, if you are a Standard Life customer, it would be a good idea for you to be extra vigilant over your finances!

And if you have any queries, the HMRC has set up the following helplines:

(lines open from 0830 to 1700 Monday to Thursday and 0830 to 1630 on Fridays)

Surname beginning A-E: 0845 91 50249 or 0845 91 50134

Surname beginning F-J: 0845 91 50242 or 0845 91 50139

Surname beginning K-O: 0845 91 50267 or 0845 91 50244

Surname beginning P-T: 0845 91 50201 or 0845 91 58845

Surname beginning U-Z: 0845 91 50139

They lose your information, and then they make you pay their fine

Categories for this post: Banking

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Comments

Dave Armstrong says:

Tuesday 06 November, 2007 / 16:11

Should have used Royal Mail special delivery
This use of couriers to save money results in loss more than Royal Mails much more secure tried and tested system for handling sensitive or high value products

Andre de Roy says:

Tuesday 06 November, 2007 / 16:11

I wonder whether this gross negligence could be tested at law should anyone suffer a loss as a consequence?

Jane Mayhead says:

Tuesday 06 November, 2007 / 16:11

Oh wonderful! Egg on the face of one of the govenment/financial institutions again - really makes you wonder if anyone is in charge!!! If that was a small company heads would roll under a great vote of no confidence but of course 'the great and the good' (ha!) dont take responsibility for anything. Banks, HMR etc etc What a farce!

Clive Atack says:

Tuesday 06 November, 2007 / 18:11

What it must be like to to handle millions of peoples private and priviledged information and lose it in such a carefree way of false economy. I hope they remember their mistakes when chasing for HMRC surcharges and STD's explanations as to why their investments are not coming up to the standards we were lead to expect.

Ray Thomas says:

Tuesday 06 November, 2007 / 19:11

why is everyone surprised?
these goverment institutions are 'bomb proof'
no heads will roll ......... so where is the incentive for due diligence?
Lets hope that the goverments pensions are also lost on a disc somewhere ........ I bet it never happens !!!!!!!!!!!!

steve hall says:

Tuesday 06 November, 2007 / 20:11

both hmrc. and standard life know the names of the people affected, so why not contact them direct and stop people guessing if they should be concerned. in 5wks the damage could already be done, and what a cheek making you pay for the call to hmrc even if it is local rate.

Mark Howard says:

Tuesday 06 November, 2007 / 23:11

First Gordon Brown taxes pensions so dramatically reducing their value, in some cases for small pension funds, taxes them out of existence. Now we learn that the Inland Revenue has lost personnel details of many of Standard Life clients at a time when identity theft is rife...!!! Does this administration have some kind of 'down on' pensioners. Perhaps they consider there are too many of us...??? You are left all the time wondering if you should take your pension now or wait in case things might improve...??? Then this happens...!!!

Les Steggles says:

Wednesday 07 November, 2007 / 09:11

With "his" VISION firmley wrapped in a wet blanket, what else do you expect? A Bonus! No HMG heads have lost the art of rolling.

Big G says:

Wednesday 07 November, 2007 / 11:11

I think the damage has already been done. I work in Retail Banking and over the weekend we have had a sudden increase in attempts to access accounts that are clealy not the person on the other end of the phone. I would urge all people who have been affected by this gross breach in Date Protection to contact their Banks, Credit Card Companies to ensure they aware they are one of the many thousands of people affected. Also, ask them to ask additional security questions when you call them that only you would know. Maybe a good idea to register with Experian (credit referrence agency) who is currently doing a 30 day free trial offer, they will send you an alert if any company requests a credit check on you. Hope this helps.

rebecca pseudo says:

Wednesday 07 November, 2007 / 23:11

HMRC-COULDN'T ORGANISE A PARTY IN A BREWERY , I KNOW HAVING BEEN A REPEATED VICTIM OF THEIR CHILD TAX CREDIT FIASCO.
What should be straight forward like transporting a CD from one place to another - seems beyond their capabalities.
Yet the arogance of this organisation always means the blame never falls were it belongs.
They are neither open, transparent or accountable to anyone - not even in this case of sheer negligence.

Clive Fletcher says:

Wednesday 07 November, 2007 / 23:11

Cutting corners again, how many times do we hear the same sorry tale from big business and government departments, cut costs no matter at what risk.If a breach has or does occur what will the spin be this time? No excuses this information should have been sent via Royal Mail or if during the postal dispute by a representative of HMRC to Standard Life. Simple as.

Gloria Broz says:

Thursday 08 November, 2007 / 00:11

Maybe that CD was deliberately lost so that Standard Life would not find out that the pension that should have been allocated to them has disappeared into someone else's pocket? Who can trust HMRC anyway???? And bloody cheek indeed to phone that number that is £0.35 per minute. They made a booboo and I have to pay? They should rectify this mess as soon as possible because if anything happens to my money and pension I will sue their asses.

John Young, says:

Thursday 08 November, 2007 / 13:11

Is this the first time its happened ?
Could this be why S.L. transferred my pension pot to some other pension company back in July this year,( I found out when I received their follow up letter asking why I had left!). They say they have recovered the funds and I will not have lost a penny.
I now wonder if they gave away my shares.Did anybody receive an update letter once our 5% loyalty bonus went in,after the first year.

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