• Citizens whose data was compromised by credit agencies, insurance companies and banks believe that this happened because of their weak data protection governance internally and externally
New Delhi: Personal data breaches have become increasingly common in the financial services industry, has found a survey by social community platform LocalCircles. Nearly 59% of the 41,000 survey respondents claimed their data was compromised by loan agencies with existing loans in the past five years after being approached with detailed alternative proposals, while 40% were contacted about their existing insurance policies or Alternate option was offered for opening bank accounts. With the same services as their existing bank.
“On an aggregate basis, the survey found that, 59% of people with existing loans have received detailed alternative offers to switch to another lending institution within the last 5 years via email, phone call, SMS, WhatsApp etc. have been received. This indicates a massive data breach as the sender has access to personal loan data of an individual, which is being used to send unsolicited loan offers," said the survey released on Wednesday.
In case of optional offers from insurance companies, the surveyed consumers revealed that the detailed optional offers made to their policies indicate that one not only has access to their PAN, Aadhaar, but also how much they take insurance, their premium and when their policy expires. In case of bank account offers, the surveyed consumers said that the offers showed access to people's banking details, which could be used to solicit them to open a similar account in another bank by offering similar or better terms and conditions. Used to be.
"Citizens whose data was compromised by credit agencies, insurance companies and banks believe it was due to their weak data protection governance internally and externally," the survey said.
It alleged that in most financial institutions in India such as loan agencies, insurance providers and banks, security of customer or consumer data has never been a part of process design, but an afterthought.
“Whenever vulnerabilities are found, citizen-centric financial institutions have bridged the gap, while many of them have resolved the issue without making long-term process and system changes. The last mile of these institutions is most vulnerable either because they employ an external organization i.e. contract workers or these organizations are not informed about the rules and regulations related to data protection," the survey said.
The findings come at a time when the government is preparing to bring out the draft Data Protection Bill this week, which aims to impose severe penalties on entities or subsidiaries that fail to comply with the rules and regulations prescribed under the bill.
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