Data losses to incur fines of up to £500,000

The Information Commissioner's Office will be able to issue fines of up to £500,000 for serious data security breaches.

The new rule is expected to come into force in the UK on 6 April 2010. It has been approved by Jack Straw MP, Secretary of State for Justice.

The size of the fine will be determined after an investigation to assess the gravity of the breach.

Other factors will include the size and finances of the organization at fault.

Individual cases will also be assessed on whether the breach was accidental or deliberate, and how much distress the leak of information caused.

Spoiler: