Life Insurance -
Norwich Union fined for fraud - 18/12/2007
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Life insurance provider Norwich Union Life has been hit with a £1.25 million fine from the Financial Services Authority (FSA) following a fraud probe.
The FSA found that slack security practices at the firm's call centres had allowed fraudsters to gain access to and clear a total of 74 insurance policies.
Also of concern was the fact that directors of the life insurance provider knew of the fraud months before customers did when it came to light last year.
Director of enforcement at the FSA Margaret Cole, commenting on its ruling, said: "Norwich Union Life let down its customers by not taking reasonable steps to keep their personal and financial information safe and secure.
"It is vital that firms have robust systems and controls in place to make sure that customers' details do not fall into the wrong hands."
The company released a statement yesterday, apologising for the security lapse.
"We have taken this matter extremely seriously and have thoroughly reviewed our systems and controls as a result," it said.
All stolen insurance monies have been refunded to customers by the insurer.
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