Richard Thomas wants custodial sentences to combat personal data theft

Information Commissioner Richard Thomas is calling for the introduction of custodial sentences to combat a growing black market trade in personal details.

The government watchdog chief has used his special powers under the Data Protection Act for the first time to deliver a report to parliament recommending jail sentences of up to two years for convicted fraudsters.

The current UK Data Protection Act does not include custodial sentences and the highest fine implemented to date is £7,000.

Thomas warns of a 'pernicious' illegal trade in personal data including addresses, bills, bank and health records.

Eduardo Ustaran, partner at law firm Field Fisher Waterhouse, heads an international team of data protection lawyers. While he welcomes the commissioner's calls for tougher sentencing he is skeptical of its effectiveness as a deterrent.

'Data protection fraud is not high on the government's political agenda but at the very least the commissioner has added it to the agenda,' Ustaran said.

Ustaran believes there is scope for companies to improve their security.

'Companies are subject to the threat of data fraud from their own employees as well as third parties and should take responsibility for the personal data they hold,' he said.