Small businesses could now be fined up to half a million pounds if they lose an individual's confidential personal data.
Under new rules designed to improve data security the size of the fine that the Information Commissioner's Office can impose has increased from five thousand pounds to 500 thousand pounds.
According to Reuters news a survey found that 66 per cent of recent data security breaches had taken place in companies employing less than 100 people.
Experts are warning small businesses to take practical measures to ensure data security, including educating employees on the consequences of failure to look after people's details.
Other suggestions are minimising the data collected from clients and even ensuring that employees are suitably background checked.
