Nationwide Building Society (UK) has been fined £980,000 by the Financial Services Authority (FSA) over security breaches. (FSA Media Release, BBC News)

Nationwide was fined for failing to have effective systems and controls to
manage its information security risks. The failings came to light
following the theft of a laptop from a Nationwide employee’s home last
year.

During its investigation, the FSA found that the
building society did not have adequate information security procedures
and controls in place, potentially exposing its customers to an
increased risk of financial crime.

The FSA also
discovered that Nationwide was not aware that the laptop contained
confidential customer information and did not start an investigation
until three weeks after the theft.

Nationwide is the UK’s largest building society and holds confidential information for over 11 million customers. The FSA will not reveal exactly what was on the laptop as it has still not been recovered.

via Tim Travers