Bloomberg privacy breaches raise red flags: experts

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Every breath you take. News that Bloomberg reporters had access to information that clients would prefer to remain confidential has angered the finance industry. Photo: Reuters

Published: 10:30am, 15 May 2013Updated: 2:05pm, 30 May 2016

Bloomberg’s privacy breach scandal has angered clients, and prompted regulators and central bankers to demand an explanation, and privacy experts say the scandal poses some disturbing questions.

The matter came to light after blue chip investment bank Goldman Sachs realised that journalists had access to more information than it had known and argued the information was too sensitive to be seen by reporters.

Goldman complained to the financial news and data provider, prompting a public apology from Bloomberg chief executive Daniel Doctoroff last week. On Tuesday, Doctoroff followed that with a second apology in a bid to restore confidence among Bloomberg’s 315,000 clients worldwide.

The news of Bloomberg’s privacy breach triggered fears at Wall Street firms about the privacy of sensitive data, as well as at the Fed and other US government departments that use Bloomberg terminals.

Central banks have queried the matter, with the Bank of England describing the practice as “reprehensible”.

Central banks examining the matter include US Federal Reserve, the European Central Bank, the Bank of Japan, the Bank of Canada, Germany’s Bundesbank and the Hong Kong Monetary Authority.