Chubb comments on Orange breach

Paul Skinner, Senior ICT Underwriting Specialist at Chubb Insurance comments on the Information Commissioner’s Office’s (ICO) ruling that Orange has breached the Data Protection Act: “The ICO’s ruling should act as a wake up call to businesses throughout the country to adopt stricter measures and working practices to protect confidential data. Companies that fail to meet the requirements of the Data Protection Act, not only face the threat of action from the Information Commissioner, but also run the risk of losing the trust and confidence of their customers.

“By asking Orange to sign an undertaking, the ICO is demonstrating that breaches are unacceptable and that any further violations are likely to result in criminal prosecution. With the ICO calling for stronger powers, this is likely to become an increasingly common scenario, especially if legislation makes it compulsory for companies to give notification of a breach.

“"By asking Orange to sign an undertaking, the ICO is demonstrating that breaches are unacceptable and that any further violations are likely to result in criminal prosecution."

“This is a classic example of what will happen if strict practices and procedures are not put in place and continually audited or alternatively are not followed. As any subsequent consequences may not be insurable it should act as a stark reminder to organisations to check if this type of security breach is covered by their insurance policy and to review their risk management accordingly.”