Outcomes - Selected Case Summaries
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Coding error causes data breach
Informal Resolution | 27 October 2020
A coding error occurred in an insurance company’s accounting system, causing remittance payments to be unintentionally sent to an incorrect bank. On receiving notification from its clients that they had not received the expected funds, the company investigated internally, identified the source of the issue, remediated it immediately and sought its third-party service provider’s assistance to correct the error in its IT system and ensure that all future payments would go to the right bank.
An agreement between the data controller and the unintended recipient was signed to ensure privacy and data protection. Given the commercial context in which the breach occurred, and the data controller’s actions to address the breach, it was unlikely that the data subject’s rights and freedoms were prejudiced, and the case was closed.