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The Importance of Encryption

The penalty of £5,000 issued to the loans company, Jala Transport Limited, has served as a timely reminder to small businesses about the importance of encryption.

The penalty was given following the theft of an unencrypted hard drive from the business owner’s car while it was stationary at a set of traffic lights in London.

The drive included the personal information of approximately 250 customers including their names, dates of birth, addresses and identity documents used to support loan applications.  The Information Commissioner’s Office stated that the fine would have been much higher had it not been for the limited financial resources available to the small company.  All data processors are reminded that they must encrypt information stored on portable devices where the loss of the data could lead to those affected suffering from damage and distress.

About the author

Natalie Ruane profile photo

Natalie Ruane

Natalie is a Partner and leads the Employment Law & HR team and specialises in education.

Published: Monday 14th October 2013
Categorised: Information Law

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