HSBC’s Swiss Private Bank Data Theft - 24,000 Clients

Europe's largest bank, HSBC, is feeling the heat due to a costly data breach that involved highly confidential client accounts. Swiss Banks..does that ring a bell?

Ex-employee Hervé Falciani gained access to client data while on a project to transfer HSBC’s customer database to a more secure system. In the process- Falciani stole 24,000 clients personal data from a branch in Switzerland.

This set of a string of concerns with clients who depend on confidentiality associated with Swiss banks. Per the FT.com report-HSBC said that the stolen information was limited to accounts in Switzerland. “We deeply regret the situation and unreservedly apologise to our clients for this threat to their privacy,” said Alexandre Zeller, head of HSBC’s Swiss private bank.

The concerns grew deeper when Ex-employee (Falciani)admitted stealing the data and that he also provided it to French tax authorities. He denies receiving any payment. Falciani also tried to sell the information to Lebanese banks before he was caught.

It is reported that his actions has strained Franco-Swiss relations because there are fears that the French authorities could use the stolen data to detect tax evaders and pass on details to other countries such as the U.S.

It is reported that due to this security breach - HSBC is sending $93M to upgrade their systems and improve security.

For the full report see:
Ref: FTC.com - By Haig Simonian in Zurich and Sharlene Goff in London
Published: March 11 2010 09:25