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Small and medium-sized businesses are not as aware of their obligations under the Data Protection Act as larger companies, according to new research.
A study by the Information Commissioners Office (ICO) reveals that only 22 per cent of SMEs surveyed were aware the Act requires them to keep customer information accurate and up to date.
Only around half of the respondents said they recognised the importance of keeping personal information secure, compared to 70 per cent of larger organisations.
Richard Thomas, the information commissioner said: "In an age where the risk of ID fraud is increasing, these findings are of considerable concern. Most businesses know that complying with the Data Protection Act makes good business sense – according to our research 94 per cent of businesses believe the Act is needed.
"By following these simple principles small businesses can ensure they provide an effective customer service."
The ICO has published official guidelines aimed at the SME sector, suggesting how they should train their staff to handle personal information properly. The guidelines also aim to assist company directors of new business start-ups.
Mr Thomas also added that the ICO will not hesitate to take action against businesses that fail to protect customer information effectively.
The research was carried out in August and September this year and covered 813 organisations in the UK.
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