labels: Infotech, IT news, Bank general
HSBC loses data of 159,000 account holders as server goes missing news
08 May 2008

Mumbai: Hongkong and Shanghai Banking Corporation (HSBC) has admitted to losing transaction data of 159,000 account holders following loss of a computer server at a Hong Kong branch.

The loss of a computer server at the Kwuntong branch of the global banking group, that could lead to the leakage of private data of 159,000 customers, invited customer wrath, some of whom opted to close their accounts.

The server went missing from the branch, which was undergoing renovation, on 6 April, HSBC confirmed last night.

The data stored on the server included the name, account number and transaction details of customers but does not contain any customer PINs, passwords or user IDs, HSBC said in a statement.

HSBC said it had lost track of the server even as the police said the server was stolen and they were still investigating.

"The server is protected by multiple layers of security. The risk of data leakage and fraudulent transactions resulting from the loss of the server is deemed to be low," the release added.

Vincent Cheng, chairman of HSBC's China and Asia operations, said none of the customers would be liable for any financial losses which might arise from fraudulent activities.

"On behalf of HSBC, I apologise to all affected customers. We (HSBC) are also victims of this loss, but of course we will bear the responsibility," Cheng told reporters. 

However, several affected customers flocked to the branch and some of them closed their accounts.

A bank spokesman said services would not be affected as the bank had copies of the data in its central computer system.

The bank reported the loss to police on April 26, the Monetary Authority on Tuesday and to the Office of the Privacy Commissioner for Personal Data yesterday.

The chairman of the Internet Society, Charles Mok Nai-kwong, said even though the server has been encrypted, there may still be ways to access the data.


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HSBC loses data of 159,000 account holders as server goes missing