British banks face fines over lax ID measures

LONDON, Oct 28 (Reuters) Britain's high street banks are failing to protect customers' account details from criminals engaged in identity theft and could face unlimited fines unless they tighten up security, a watchdog chief said today.

Britain's information commissioner, a government-appointed official who reports to parliament on matters of privacy and public openess, said there was ''highly disturbing'' evidence that personal information, such as bank statements and loan applications, were being disposed of in a casual manner.

''There have been cases now which have quite strong prima facie evidence which we are urgently investigating, of banks' rubbish bags found on the public highway outside banks,'' Richard Thomas told today's Times newspaper.

He said the public and even bank employees had complained to his office about lax security.

The Times said Thomas was probing the Post Office, HSBC, NatWest and the Royal Bank of Scotland.

''What we are seeing so far is highly disturbing and we need to send a very strong wake-up call.'' One of the cases being investigated by his staff was of an application for a current account which had the individual's name, address, date of birth, current account number, and other personal details all found in a bin bag.

Such information would make identity theft extremely easy.

The newspaper said the commissioner was considering taking enforcement action which might result in unlimited fines.

Ian Mullen, head of the British Bankers' Association, said banks were very conscious about how they disposed of customers' sensitive information.

''We are taking it most seriously. The banking code states that customer confidentiality is paramount and we should not in any way compromise that,'' he told BBC radio.

The problem of identity theft is on the increase.

Friday's police said criminal gangs had infiltrated about 10 percent of Glasgow's financial call centres, stealing customers' identities and fleecing them of thousands of pounds.

The gangs either place members in call centres or intimidate employees to provide sensitive customer details.

The information is then used to steal identities and fraudulently set up accounts or transfer money.

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