HSBC was fined £3m by the Financial Services Authority for failing to properly look after its customers' information and private data, as such breaches led to at least two losses of customer data.

The FSA was probing the bank and found unencrypted customer details on open shelves and unlocked cabinets. It was also uncovered that clients’ details were sent through the post or couriers to third parties, moreover employees were not trained in dealing with risks related to identity theft.

As the director of enforcement at the FSA Margaret Cole stated, these failures are very disappointing as all three companies failed their customers by being careless with personal details which could have ended up in the hands of criminals.

In April 2007 HSBC Actuaries lost details on 1,917 pension scheme members. But in February 2008 HSBC Life sent through the post an unencrypted CD containing details of 180,000 customers, that was lost.

Since HSBC cooperated with the FSA investigation, it had its fine discounted by a third. HSBC Life UK Limited was fined £1,610,000, HSBC Actuaries and Consultants Limited was fined £875,000 and HSBC Insurance Brokers Limited was fined £700,000.