It has now been officially announced that two password protected discs containing a full copy of HMRC's entire data in relation to the payment of child benefit have been lost in transit between HMRC and the National Audit Office. The missing information contains details of all child benefit recipients: records for 25 million individuals and 7.25 million families. These records include the recipient and their children's names, addresses and dates of birth, it includes Child Benefit numbers, National Insurance Numbers, and, where relevant, bank or building society account details.

We understand that the records are comprehensive. Because they concern such comprehensive personal information, the missing records could offer criminals considerable opportunity for identity theft and other forms of fraud. Normal good practice in relation to checking bank accounts is now even more important. In common with our colleagues in the UK we suggest:

• Check bank statements relating to accounts into which child benefit is being paid thoroughly and regularly.
• Any entries relating to organisations you do not normally deal with should be verified immediately.
• In some instances, child benefit is paid directly into an account held by the child, and these accounts should not be overlooked.
• We urge the reporting of any suspicions of identity fraud both to the financial institution concerned and to the relevant police authority.

The ICAI press release is reproduced at Section 2.02.