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Account Management
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Millions race to change bank accounts as families panic after benefits blunder

UK Daily Mail
Wednesday November 21, 2007

Banks are facing overload from millions of customers worried about identity theft after the biggest loss of personal data in history.

Staff are expecting to be deluged by panicking account holders after a junior civil servant lost two discs containing information on 25 million people.

During Prime Minster's Questions this lunchtime, Prime Minister Gordon Brown told the Commons that he "profoundly regretted" and apologised for the loss of Child benefit data by HM Customs and Revenue.

The astonishing blunder by HM Revenue and Customs, which affects every family in the country claiming child benefit, has triggered a huge fraud alert.

(Article continues below)

This morning on GMTV the Chancellor Alistair Darling "apologised unreservedly" for what he described as a "very very bad situation indeed."

Accounts thought to be particularly at risk are those that use children's names or dates of births as passwords. It is feared that the disaster will cost the banking system tens of millions of pounds.

High street banks such as Barclays and Halifax have already briefed staff on how to detect attempts to steal money from accounts.

A spokesman for Barclays said: "We've briefed staff to be extra vigilant on identification and verification with new account openings and changes of accounts. The extra checks are down to staff judgment, but we're asking customers to be patient."

Full article here.

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