Barclays customer details 'stolen and sold to scammers'


Updated on 10 February 2014 | 1 Comment

An investigation is under way into allegations that confidential Barclays customer files were stolen and sold on to rogue city traders.

Barclays is facing a fresh crisis after it has been alleged that thousands of files containing confidential customer information were stolen and sold to unscrupulous brokers.

The data breach was exposed by a whistle-blower who passed The Mail on Sunday a memory stick containing a sample of 2,000 files linked to Barclays customers. He claims there are 25,000 more files in circulation.

The stolen files are believed to hold highly sensitive information regarding earnings, savings, passport and National Insurance numbers, as well as details on mortgages, health issues and insurance policies.

According to the whistle-blower this type of information is worth £50 a file on the black market as leads that rogue salesmen can use to dupe potential investors.

The stolen data

The files date back from 2008 and contain information from customers that originally contacted the bank’s Financial Planning division for advice.

Consultations with the advisors included tests to reveal attitudes to risk.

This stolen information could be used by scammers to persuade victims into buying unsound investments.

The whistle-blower told the newspaper the leaked information gave unscrupulous brokers a ‘psychological edge over potential investors’.

The Barclays Financial Planning department was shut down in 2011, but it is claimed the leads were used from December 2012 to September 2013, when victims were persuaded to buy rare earth metals that didn’t exist.

Compare current accounts with lovemoney.com

What happens next?

The Information Commissioner’s Office has said it would be working with the newspaper and the police to investigate what’s happened.

[SPOTLIGHT]If the data leak claims made are true it would mean Barclays had breached the Data Protection Act, which requires firms to keep sensitive personal information secure.

It is not clear how the information was stolen, but Barclays could face a fine for the breach. The maximum penalty for losing personal data is £500,000.

However, the Financial Conduct Authority has the power to impose unlimited fines.

What Barclays has said

Barclays has said it is investigating the matter and will be taking the necessary steps to contact the customers affected.

A Barclays spokeswoman said: "We are grateful to the Mail on Sunday for bringing this to our attention and we contacted the Information Commissioner and other regulators on Friday as soon as we were made aware.

"We will take all necessary steps to contact and advise those customers as soon as possible so that they can also ensure the safety of their personal data. Protecting our customers' data is a top priority and we take this issue extremely seriously. This appears to be criminal action and we will co-operate with the authorities on pursuing the perpetrator."

Moving on

If you aren’t satisfied with the latest Barclays controversy and are worried about how the bank deals with your personal information, you might want to consider moving bank.

Many are offering cash incentives for switching to one of their current accounts at the moment.

First Direct, The Cooperative Bank and Halifax are offering £100 when you switch.

You can compare current accounts on lovemoney.com.

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Barclays to 'simplify' overdraft fees

Why some current accounts beat top savings accounts

Clydesdale and Yorkshire slash fee on Control account

Co-operative Bank and Nationwide launch new cash switching offers

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