Government loses 25 million confidential records

Commenting on possibly the most serious breach in UK banking history, Kevin Mountford, head of savings and current accounts at price comparison site moneysupermarket.com, said: "Everyone must take immediate action to take stock of their current finances. There are 25 million people in imminent danger of suffering identity theft and financial losses.

"The person in possession of these discs has names, addresses, dates of birth, National Insurance Numbers and bank account details – everything needed to conduct a massive fraud.

"This is an absolutely unacceptable breach – probably the most serious one in British banking history. It has put identities, finances and lives at risk.

“Customers must now be even more vigilant, regularly checking their accounts online, requesting mini-statements at the ATM and poring over their monthly statements.

“If anyone sees even the smallest irregularity, they should report it immediately to their bank.

“Be very wary of the account you have your Child Benefit paid into and consider asking for a new account number or closing it and opening a new account.

"Everyone must be on their guard. The seriousness of this cannot be underestimated, with Paul Gray, the head of Revenue and Customs, already resigning over it.”