Yesterday, the Chancellor of the Exchequer announced that Her Majesty's Revenue and Customs (HMRC) have lost two computer discs containing personal data for everyone who receives Child Benefit. The information on the discs includes names and dates of birth of both parent and child, addresses, national insurance numbers and details of bank or building society accounts where benefits are paid. HMRC will write to all families affected to alert them to this issue.

HMRC do not believe that the discs have been stolen and there is no current evidence that any fraud has been attempted as a result of this incident.

If you are concerned about the loss of your personal data, please telephone the HMRC dedicated Child Benefit Helpline on 0845 302 1444.

We would like to assure our customers that we have robust procedures in place to help protect accounts from fraudulent activity and will continue to monitor the developing situation very closely. However, we do urge you to remain vigilant and to tell us immediately if you discover any unfamiliar transactions on your account. You can do this by contacting your local branch or telephoning our Customer Services Department on 01223 727727.

There are a number of ways you can help protect your accounts and prevent your ID from being stolen. These include:

• Taking care of your passbook and other account information
•  Letting us know as soon as possible of any change to your name, address, telephone number or e-mail address (if this is how we communicate with you)
• Checking your statements or passbook regularly
• Co-operating with us (or the police) in investigating transactions
•  Never giving your account details or security information to anyone unless you know who they are and why they need them
• Shredding printed information about your account when you wish to get rid of it

You should also look out for the following early indicators of potential ID theft and fraud:

• Your regular bank or credit card statements fail to appear
• You notice that some of your mail is missing
•  You receive a bill or statement for a service or items you have not authorised, purchased or ordered
•  A debt collection agency contacts you about goods you have not ordered or an account you have never opened
• You receive a telephone call or letter saying you have been approved or denied credit for accounts you know nothing about

If you believe you have been a victim of ID fraud there are a number of steps you should take:

• Contact your bank or financial institution concerned and keep a record of all communication
•  Contact CIFAS (the UK's Fraud Prevention Service) on 0870 010 2091. They will record your name and address with 'Protective Registration' so that anyone applying for credit in your name will automatically be double-checked, such as by requests for further proof of identification.
•  Check with the credit reference agencies detailed below. If applications for credit have been made in your name you can ask to have any incorrect information removed:
  - Experian: 0870 241 6212 www.experian.co.uk
  - Equifax: 0870 010 0583 www.equifax.co.uk
  - Call Credit: 0870 060 1414 www.callcredit.co.uk

Cliff Verill, Head of Risk
Cambridge Building Society