Following a series of data theft and loss scandals in the UK, Richard Thomas, the UK Information Commissioner said that in some case lives may have been put at risk as records of millions of UK citizens have entered the public domain.

“The more databases that are set up and the more information exchanged, the greater the risk of things going wrong.” Mr Thomas warns that the soaring number of data breaches since HM Revenue and Customs lost 25 million child benefit records in November last year shows that holding data creates “toxic liabilities”.

He went on to say, “The more you centralise data collection, the greater the risk of multiple records going missing or wrong decisions about real people being made. The more you lose the trust and confidence of customers and the public, the more your prosperity and standing will suffer. Put simply, holding huge collections of personal data brings significant risks.”

The recent scandals in the UK should serve as a warning to all companies operating customer databases about the importance of data security. Solutions such as LiquidMachines can help companies greatly in achieving information security.

The damage that the theft of a customer database could do to a company is significant, not to mention the risks that consumers are placed under.

There is likely to be increasing pressure and legislation regarding data custody, integrity and privacy.

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