Search focuses on agency HQ
Nov 21 2007 by Adrian Pearson, The Journal
POLICE are investigating staff at the North-East offices of the Child Benefit Agency after personal details of millions of families across the UK went missing.
The Metropolitan Police have been brought in to interview staff at the Washington offices of HM Revenue and Customs (HMRC) as part of an investigation into the disappearance of two discs containing the details of 25 million children from every family in Britain with a child aged under 16.
Last night the 2,000 staff at the Washington HQ were forced to empty lockers and desk draws as police continued their search. As well as the name, address and date of birth of every child in the UK, the discs also contain some bank or building society details.
The password-protected details were lost after two discs were sent by a junior official to the National Audit Office via delivery firm TNT on October 18, but never arrived.
The discs were not sent by recorded delivery and when the Audit Office failed to receive them, no loss was reported for three weeks.
Yesterday the head of HM Revenue and Customs Paul Gray resigned as Met Police, assisted by Northumbria Police, continued to examine the Waterview Park offices, despite an inquiry beginning on Chancellor Alistair Darling’s insistence on November 14.
Mr Gray’s resignation did little to deflect criticism of Mr Darling when he addressed the House of Commons yesterday, saying that people should monitor their accounts “for any unusual activity”.
He told MPs: “There is no evidence this data has reached the wrong hands. There is no evidence of fraud or criminal activity.
“Banks and building societies are putting in place safeguards to protect people’s accounts. No-one will suffer any loss if they are an innocent victim of fraud.”
Conservative shadow, Tyneside MP Alan Duncan, said the pressure was mounting on the Chancellor.
He said: “This is a bad day and a bad week for Alistair Darling. What should be the most secure department of Government turns out to be the least safe. Why should people believe the claims of the Government when they warn us of the dangers of identity theft, when the same precautions are not being heeded at the centre of Government?”
Union leaders have accused the Government of heading towards a disaster by reducing staffing levels at HMRC.
Mark Serwotka, general secretary of the Public and Commercial Services Union. said: “The extremely serious loss of confidential data should be set in the context of the enormous pressure being placed on HMRC by Government-imposed job cuts totalling 25,000 by 2011, the recent merger and massive ongoing restructuring, which will see large-scale office closures.
“We urge the Government to put extra resources into HMRC rather than continuing with cutting jobs.”
Houghton and Washington East MP Fraser Kemp said: “We should not lose sight of the fact that the job done by people at the Washington office is aside from this normally very efficient.
“They have ensured for four years that families have received their Child Benefit and the vast majority have done a superb job.”
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Timeline
THIS is the chain of events leading to the announcement by Chancellor Alistair Darling of the loss of Child Benefit details relating to 25 million individuals.
March 2007: A junior official at HM Revenue and Customs (HMRC) provides the National Audit Office (NAO) with a full copy of HMRC’s child benefit data, in breach of security procedures. The information is later safely returned.
September: Records of around 15,000 people’s details are lost after being sent by HMRC to Standard Life. In the same month, an HMRC laptop containing around 400 ISA customers’ details is stolen.
October 18: A junior official again sends Child Benefit data to the NAO via the courier TNT, which operates the HMRC’s post system. The package, containing two CDs with details relating to 25 million individuals, is not recorded or registered and fails to arrive.
October 24: The NAO tells HMRC it has not received the data. The HMRC official thinks the package is delayed by postal strikes or in the NAO’s office move. They do not tell senior officials. A second copy of the data is sent by HMRC to the NAO, again in breach of procedures. This time the package is sent by registered post and arrives safely.
November 8: Senior HMRC management told the October 18 package is missing.
November 10: Mr Darling is told about the missing data and immediately informs Prime Minister Gordon Brown. The Chancellor orders an immediate investigation, searches of all premises where the package might be found and action to prevent a repeat of the incident.
November 12: HMRC report that evidence has been found which might lead to the retrieval of the package.
November 14: Mr Darling instructs Revenue and Customs chairman Paul Gray to call in the Metropolitan Police. Police searches of HMRC and NAO premises, along with interviews of staff, continue.
November 15: Mr Darling discusses the incident with Information Commissioner Richard Thomas, who agrees remedial action must be taken before a public statement is made. The Met is asked to take over HMRC’s probe.
Week of November 12-18: Mr Gray informs Mr Darling "on his own initiative" that he feels he should resign.
November 15: HMRC seeks the advice of the Financial Services Authority and Serious Organised Crime Agency.
November 18: Scotland Yard takes complete control of the package investigation.
November 19: The nation’s banks and building societies are given details of affected accounts so they can monitor suspicious transactions.
November 20: News that Mr Darling is to make a statement to the House of Commons on HMRC is followed by the announcement of Mr Gray’s resignation. Mr Darling tells MPs details of the security lapse and announces an investigation of HMRC’s security procedures by PricewaterhouseCoopers chairman Kieran Poynter, in consultation with the Independent Police Complaints Commission.
