Date issued: 14 Feb 2007

STATEMENT FROM NATIONWIDE BUILDING SOCIETY RE: FSA FINE

The FSA has today announced that it has imposed a fine on Nationwide as a result of an investigation following the theft of a laptop computer from an employee's home in August last year.

Philip Williamson, Nationwide's chief executive said: "We have extensive security procedures in place, but in this isolated incident our systems of control were found wanting. We have made changes to fill the gap and improve our procedures further.

"Towards the end of last year I sent a letter to every one of our members telling them about this matter and apologising for any concern it may have caused them. I would like to reiterate that apology to our members and assure them that we have taken action to tighten our already high security procedures.

"To set people's minds at rest I wish to emphasise that there has been no loss of money from our customers' accounts as a result of this incident. Our customers have the additional assurance that they are protected by the Society's customer promise that 'If you are the innocent victim of fraud, you will not lose out.'"

• The laptop was stolen in a domestic burglary from an employee's home, in August of last year
• We and the police believe it was stolen for its intrinsic value as a laptop, rather than for the information it contained
• The laptop was security protected and the information on it, which was to be used for marketing purposes, cannot be used on its own to commit identity fraud
• There were no PINs, passwords, account balance information or memorable data relating to any customers.

The police, the FSA and the Information Commissioner were informed of the theft at the time and Nationwide has been co-operating with them since.

Nationwide welcomes the fact that the FSA acknowledges that the Society has:

• Taken a range of additional measures to increase security around accounts
• Informed customers of the loss of the information
• Affirmed its existing policy of reimbursing customers who are innocent victims of fraud
• Commissioned a comprehensive review of information security procedures and controls.