The UK’s data protection regulator has warned that a reluctance among organizations to share customers’ personal information is worsening a fraud epidemic in the country.
Fraud is now the most common crime in England and Wales, accounting for two-fifths (39%) of the total, according to official statistics.
Yet as long as data is shared in a “responsible, fair and proportionate” way, there’s nothing stopping organizations from doing so in order to identity, investigate and prevent these crimes, the Information Commissioner’s Office (ICO) argued on Friday.
Banks, telecoms firms and digital platform providers are among the worst offenders, the regulator claimed.
Read more on fraud: UK Retailers Lost £11.3bn to Fraud in 2023
“From emotional distress to financial damage, scams and fraud have serious consequences. We strongly support responsible and effective data sharing between organizations, which is key to staying one step ahead of criminals and preventing scams before they cause harm,” said executive director for regulatory risk, Stephen Almond.
“Protecting people must be the priority – I am warning organizations today that data protection law is not an excuse, and it does not stop you sharing data that may assist with tackling fraud. Organizations acting responsibly can be reassured that we will take this into account if something goes wrong and we need to consider a regulatory response.”
The ICO published new guidance for organizations on how to share personal information intended for fraud prevention purposes. It offers advice such as:
- Carry out a Data Protection Impact Assessment (DPIA)
- Clarify responsibilities
- Set up formal data sharing agreements
- Identify a lawful basis
- Understand the type of information being shared
- Comply with data protection principles like security, accountability and data minimization
- Respect people’s rights
“Information sharing between private industry, and with the public sector, is a fundamental tool used to tackle fraud,” said Nick Sharp, deputy director fraud in the National Economic Crime Centre.
“The new advice from the ICO is very welcome, and we encourage all industry partners to use it to ensure appropriate and confident data sharing enables our joint efforts to reduce the harm from fraud.”
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