Consumers' Foundation cries foul over data loss

With personal-data theft becoming rampant, the Consumers' Founda-tion yesterday attacked financial institutions and the Ministry of Finance for their inability to protect the public's confidential data.

The anger followed a Cabinet announcement on Tuesday that 31 public officials would be punished over a recent leak of personal data -- including 18 employees at state-run Chunghwa Telecom Co (中華電信), eight Coast Guard Administration officials and five Criminal Investigation Bureau officials.

"As the name list revealed, none of the financial institutions were held accountable. Nor have they announced any indemnifying measures to compensate the victims," Cheng Jen-hung (程仁宏), secretary-general of the foundation, told a press conference.

The foundation said the seriousness and the legal implications of divulging banks' information were far greater than telecom operators.

"Financial institutions must not act like ostriches and should immediately notify affected customers and provide appropriate compensation," Cheng said.

A former chief of legal affairs with Chinatrust Commercial Bank (中國信託) said that data about savings accounts, credit-card transactions and car and house loans could be used by criminal syndicates for blackmail or intimidation.

"But apparently the government authorities and financial institutions have not learned any lessons from previous incidents," said Christopher Kuo (郭尚義), now a member of the foundation's financial panel.

Several crime rings have stolen tens of millions of bank account numbers and personal information in the past few years.

In late April, for instance, Yu Li International Marketing Corp (優力國際行銷公司) was found to have obtained information on more than 15 million individuals from the nation's telecom companies and financial institutions.

Kuo said the Banking Law (銀行法) and the Financial Holding Company Act (金融控股公司法) should be used to punish violators, including the companies' boards of directors.

Chang Wan-tung (張萬同), the convener of the foundation's financial panel, criticized the nation's corrupt political-banking structure and unfair regulations, which he said favor only the rich and those in power.

According to Article 131 of the Banking Law, financial institutions which are found breaking the law are subject to penalties of between NT$500,000 and NT$2.5 million, which "actually means nothing to those big companies," Chang said.

The foundation demanded that a statutory declaration be enclosed in the next banking bill to promise that personal data will be well protected or monetary damages will be offered according to the Consumer Protection Law (消保法).

"We have to discuss with banks before deciding whether it should be offered to customers," said Yuan Ming-chang (袁明昌), a director of the Bureau of Monetary Affairs.