German property company Deutsche Wohnen has been hit with a staggering data protection fine for hanging onto a treasure trove of personal and financial data of former and current housing tenants.
The firm was fined 14.5 million (approximately 12.5 million) after German data protection investigators found it had been holding information in an archival system from which it was impossible to delete records.
This highly sensitive data, which belonged to former and current tenants, included salary information, extracts from employment and training contracts, tax and health insurance records, as well as bank statements.
This data was stored in the system on an indiscriminate basis, according to German data protection authorities, and without appropriate consents. There was also no legally-defined basis for collecting and storing the data.
Deutsche Wohnen was found to have violated the General Data Protection Regulation (GDPR) under Article 25 (1), which covers the need for businesses to ensure they're adhering to data protection principles such as data minimisation. The firm also violated Article 5, which related to the core ethical principles related to processing data.
Businesses are instructed under GDPR not to keep personal data beyond the legally-established reasons they have identified, and for a period no longer than is required in order to carry out the processing.
RELATED RESOURCE
The German property firm was first warned about its archive system in 2017, according to the data regulator, and requested to change its archiving system as a matter of urgency.
Although the firm changed the archive system in March 2019, the changes still did not establish a lawful basis for storing the personal data and GDPR proceedings were launched, spanning the period between May 2018, when GDPR came into force, and this point.
The initial financial penalty was actually much higher, at roughly 28 million (24 million) based on the firm's annual turnover at more than a billion euros. GDPR fines can fall anywhere in the order of 20 million, or up to 4% of a firm's annual turnover, depending on the severity of the violation.
This initial fine represented 2.8% of the firm's turnover but was reduced because the company had actually taken concrete steps towards correcting its data storage mechanisms, and co-operated with regulators during the process.
IT Pro approached the property giant for its response to the GDPR fine.
-
Should AI PCs be part of your next hardware refresh?AI PCs are fast becoming a business staple and a surefire way to future-proof your business
-
Westcon-Comstor and Vectra AI launch brace of new channel initiativesNews Westcon-Comstor and Vectra AI have announced the launch of two new channel growth initiatives focused on the managed security service provider (MSSP) space and AWS Marketplace.
-
Tech leaders worry AI innovation is outpacing governanceNews Business execs have warned the current rate of AI innovation is outpacing governance practices.
-
Top data security trendsWhitepaper Must-have tools for your data security toolkit
-
IBM: Data governance for data-driven organizationswhitepaper Master your data management
-
SEC data breach rules branded “worryingly vague” by industry bodyNews The new rules announced last week leave many questions unanswered, according to security industry experts
-
The gratitude gapWhitepaper 2023 State of Recognition
-
Meta sues ‘data scraping for hire’ service that collected info on 600k usersNews Meta says tackling data scraping will require a “collective effort” from platforms and policymakers
-
Building a data governance strategy in 2023In-depth Data governance will continue to expand as attitudes change and businesses look to optimise the value of their data
-
FCC plans strict overhaul of 15-year-old US data breach regulationsNews Telcos could no longer be able to use negligence as a defence for data breaches as the FCC also seeks to hasten public notification of breaches
