E-mails released by the National Audit Office have confirmed that officials at HM Revenue and Customs, did not want to remove sensitive information from child benefit data sent to the auditors because doing so would cost extra.
The revelation comes as the fallout from HMRC's loss of 25 million people's records continues to rock the British government.
Chancellor Alistair Darling blamed the loss -- Britain's biggest data breach ever -- on a junior official at HMRC who had sent unencrypted disks with information on child benefit claimants to the NAO.
But the e-mails, published by the NAO alongside its briefing for the chancellor, appear to bear out key accusations made by the Conservative Party that cost was an issue and that a senior official at HMRC was aware that unfiltered data was likely to be sent.
Source Computer World
Monday, 26 November 2007
Saturday, 24 November 2007
More Discs Lost
HM Revenue and Customs has confirmed that a further six data discs have gone missing in transit between its offices in Preston and London.
The discs, which were reported missing on 30 October, contained recorded conversations between a member of staff and a customer making a complaint.
Police are still searching for two computer discs containing the details of 25m Child Benefit claimants.
The HMRC says evidence suggests these two discs are still on its premises.
The second lost package, containing six discs, went missing after being sent from a tax credit office in Preston to HMRC's Whitehall headquarters in London.
They were despatched through the same internal mail system used by those who sent the two missing Child Benefit discs, which have not been seen since being posted at HMRC in Washington, Tyne and Wear, on 18 October.
Source BBC
Is the HMRC fit for purpose?
The discs, which were reported missing on 30 October, contained recorded conversations between a member of staff and a customer making a complaint.
Police are still searching for two computer discs containing the details of 25m Child Benefit claimants.
The HMRC says evidence suggests these two discs are still on its premises.
The second lost package, containing six discs, went missing after being sent from a tax credit office in Preston to HMRC's Whitehall headquarters in London.
They were despatched through the same internal mail system used by those who sent the two missing Child Benefit discs, which have not been seen since being posted at HMRC in Washington, Tyne and Wear, on 18 October.
Source BBC
Is the HMRC fit for purpose?
Friday, 23 November 2007
Data Laws May Have Been Breached
Unencrypted discs with 25 million Child Benefit records on them were handed to an accountancy firm by government auditors, it has emerged.
The National Audit Office (NAO) gave the CDs - similar to the ones lost by HM Revenue and Customs (HMRC) officials - to accountants KPMG for auditing.
It said the discs - with bank account details on them - were delivered "by hand" to KPMG and returned safely.
The Information Commissioner is probing whether data laws were broken.
A spokesman said the commissioner would be looking at "all aspects" of data protection surrounding the missing Child Benefit records as part of its investigation.
Source BBC
The HMRC has been remarkably cavalier with people's data. Do they have any concept of the risks posed by distributing private data to all and sundry?
The National Audit Office (NAO) gave the CDs - similar to the ones lost by HM Revenue and Customs (HMRC) officials - to accountants KPMG for auditing.
It said the discs - with bank account details on them - were delivered "by hand" to KPMG and returned safely.
The Information Commissioner is probing whether data laws were broken.
A spokesman said the commissioner would be looking at "all aspects" of data protection surrounding the missing Child Benefit records as part of its investigation.
Source BBC
The HMRC has been remarkably cavalier with people's data. Do they have any concept of the risks posed by distributing private data to all and sundry?
Darling Denies Cover Up
Chancellor Alistair Darling is standing by his version of events of how discs containing the personal details of 25 million people went missing.
The Treasury said there was nothing in e-mails released on Thursday to contradict the chancellor's account.
The e-mails suggest a senior manager was involved - something not mentioned in Mr Darling's statement to MPs.
BBC Political Editor Nick Robinson said:
"I am told that when he spoke to the Commons the chancellor had not seen the e-mails and had not been told of the potential involvement of a senior official."
He added:
"The suggestion that a single 23-year-old on low pay at the Child Benefit Centre in Washington is solely responsible for this saga may suit certain people - including the managements of the NAO and HMRC who have clearly clashed in their accounts of this affair - but it beggars belief."
Source BBC
The Treasury said there was nothing in e-mails released on Thursday to contradict the chancellor's account.
The e-mails suggest a senior manager was involved - something not mentioned in Mr Darling's statement to MPs.
BBC Political Editor Nick Robinson said:
"I am told that when he spoke to the Commons the chancellor had not seen the e-mails and had not been told of the potential involvement of a senior official."
He added:
"The suggestion that a single 23-year-old on low pay at the Child Benefit Centre in Washington is solely responsible for this saga may suit certain people - including the managements of the NAO and HMRC who have clearly clashed in their accounts of this affair - but it beggars belief."
Source BBC
Breathtaking Loss
Ovum principal analyst Graham Titterington encapsulated the scale of the event by saying:
"This announcement is breathtaking because of the scale of the loss but not because it is a unique event. Indeed, it is the third major data leakage from Her Majesty's Revenue & Customs [HMRC] in just three months."
Titterington continued:
"If the data has fallen into the hands of identity thieves, which is unlikely, the entire national identity ecosystem is undermined for two generations. The UK government and the nation is reduced to hoping that these two CDs are languishing in a rubbish bin somewhere."
Source ZDNet
"This announcement is breathtaking because of the scale of the loss but not because it is a unique event. Indeed, it is the third major data leakage from Her Majesty's Revenue & Customs [HMRC] in just three months."
Titterington continued:
"If the data has fallen into the hands of identity thieves, which is unlikely, the entire national identity ecosystem is undermined for two generations. The UK government and the nation is reduced to hoping that these two CDs are languishing in a rubbish bin somewhere."
Source ZDNet
Thursday, 22 November 2007
HMRC Chairman Quits
The taxman’s policy chief Dave Hartnett has been appointed acting chairman of the department.
The appointment of Hartnett follows the sensational departure of Paul Gray over the loss of the personal data of 25 million people.
Chairman Paul Gray tendered his resignation on Tuesday immediately as the news was announced, bringing to an end his brief run at the department and disappointing advisers who had warmed to his style of management.
Source Accountancy Age
The real responsibility for this fiasco lies with Brown who set up the unmanageable HMRC in the first place.
The appointment of Hartnett follows the sensational departure of Paul Gray over the loss of the personal data of 25 million people.
Chairman Paul Gray tendered his resignation on Tuesday immediately as the news was announced, bringing to an end his brief run at the department and disappointing advisers who had warmed to his style of management.
Source Accountancy Age
The real responsibility for this fiasco lies with Brown who set up the unmanageable HMRC in the first place.
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