The British government has introduced legislation that could see companies fined up to £500,000 ($NZ1.059 million) for serious data breaches or losses.

The fines will be imposed for serious data breaches or losses with the UK’s Information Commissioner, Christopher Graham, saying that the penalties are designed to act as a deterrent.

Graham said he hoped that they would encourage companies to comply more closely with the Data Protection Act. “I will not hesitate to use these tough new sanctions for the most serious cases where organisations disregard the law," he said.

Imperva’s Chief Technology Officer, Amichai Shulman, also applauded the move and would welcome a similar move around the world. “The UK has shown a strong lead in allowing the Information Commissioner’s Office (ICO) to levy hefty fines under the Data Protection Act (DPA). The sum for a serious data breach will rise on April 6 from a maximum of £5,000 ($NZ10,595) to £500,000. Clearly it would benefit the rest of the world to follow this lead.”

Update: NZICT CEO Brett O'Riley has told IT Brief that it would welcome any move focusing on improving cyber security. Full story here.