Darling: millions at risk of fraud

Updated on 20 November 2007

A string of security breaches has led to the confidential records of 25 million people being at risk of fraud, the Chancellor has revealed.

In what is thought to be the worst data protection failure ever, families are now being urged to check their bank accounts amid fears the Customs' records could fall into the wrong hands.

The Chancellor Alistair Darling said the sensitive data - including bank details, addresses, and dates of birth - had been lost in the post, after a blunder by junior officials meant it was not even sent by recorded delivery.

Darling described the security breach as an "extremely serious matter", and confirmed the police were investigating.

The head of Revenue & Customs (HMRC), Paul Gray, resigned today ahead of the revelations.

'"If people see anything in their statements or accounts that is unusual they should contact their banks.'

Alistair Darling

The security breach occurred after the HMRC posted discs with the personal details of 25 million families - obtained via the child benefits system - to the National Audit Office last month.

The discs, transported by TNT, have subsequently been lost.

Darling said junior officials had breached data protection guidelines by mailing the discs, but it was not the first time they had posted such information.

He added: "If people see anything in their statements or accounts that is unusual they should contact their banks."

Banking institutions have not reported extra fraudulent activity following the breach, Darling said.

The Metropolitan Police are searching for the disk, and investigating the overall circumstances surrounding its loss.