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Practices

New book warns data breaches present major threat to critical infrastructure and that regulation is failing

24 November 2009

A new guide to data security written by a leading lawyer in the field warns there is a real danger of a collapse of critical infrastructure as a result of a data security breach. Author Stewart Room is a partner in the Privacy and Information Group at law firm, Field Fisher Waterhouse and President of the National Association of Data Protection Officers. Whilst researching the book he uncovered a major lack of confidence in current data security regulation with a substantial deficit between the regulatory powers needed to prevent serious breaches and those that have been granted.

The Information Commissioner’s Office (ICO) has seen 424 organisations report data security breaches in the past 12 months compared to 277 the year before. This is a growing problem, however so far most serious data losses have been as a result of either mishandling or negligence within the affected organisations and therefore the consequences have been relatively minor. The book warns that a more serious threat comes from malicious breaches, either by cyber-criminals and hackers or from those inside the organisation such as the recent T-Mobile breach. 

Whilst researching the book Stewart spoke with many security professionals, technical experts and interested Parliamentarians. The experts agreed that we are facing unprecedented challenges in the area of data security, with the UK under sustained attack from cyber-criminals.

Stewart Room said: “Fortunately, we have not yet experienced the full potential of a data security breach. If we do the effect on governments and world economies could be huge. What would happen if there was a catastrophic failure of data security within the heart of the already troubled financial services sector, rather than at the periphery? What would the consequences of a catastrophic failure of data security within law enforcement or other critical national infrastructure be? The HMRC case led to more stringent data protection standards for the public sector but HMRC was concerned only with threats arising from negligence. The potential implications of a breach caused by malicious activity or failure of technology have not yet been exposed on a large scale.”

The book “Butterworths Data Security Law & Practice” examines lessons to be learnt from recent breaches and regulatory actions by the Information Commissioner and the FSA, providing practical guidance for compliance and a comparison of the treatment of security breaches across the European Union and in the US.  It comes at a time when the ICO is ramping up its powers, with penalties which could be as much as £500,000, set to come into force next year. 

A website dedicated to advice on data security has also been launched by Field Fisher Waterhouse along with KPMG and RSA Security. breachaction.co.uk provides companies that have suffered a data breach with access to a range of expert help.

The book is published by Lexis Nexis.

For further press information, or if you would be interested in reviewing the book please contact:
Louise Eckersley, PR Manager, on 020 7861 4120.