Investigation launched after newspaper exposé.
The Information Commissioner’s Office (ICO) has launched an investigation into allegations firms have been selling pension information and personal data.
The move follows a report in the Daily Mail newspaper on Monday, where a number of database firms were apparently filmed offering to sell details of pension savers for as little as 5p a person without checking what the details would be used for, potentially exposing people to scammers.
The ICO is now investigating whether there have been any breaches of the Data Protection Act or Privacy and Electronic Communications Regulations. It is also in contact with financial regulator the Financial Conduct Authority and the police about the issue.
The ICO can issue fines of up to £500,000 for the most serious Data Protection Act breaches, as well as pursue criminal prosecutions around unlawfully obtaining or accessing personal data.
Steve Eckersley, head of enforcement at the ICO, said that the evidence it had seen had suggested a “frequent disregard of laws” that are in place to protect people.
[SPOTLIGHT]He added: “Personal data is such a valuable asset, particularly financial information. The worst case scenario here is this information getting into the wrong hands and being used to target individuals at a critical point in their financial lives.”
Tom McPhail, head of pensions research at investment company Hargeaves Lansdown, warned that people may inadvertently agree to a firm selling their details to others when they sign up for other services. He added: “This shows the importance of choosing the firms you work with carefully. A good starting point is to only deal with regulated firms and to check what their policy is on client data.”
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