Swiss Bank Employee Arrested for Stealing Customer Data

In another blow to the Swiss banking industry, a $2 trillion business based on secrecy, private bank Julius Bear confirmed Sunday that one of its Zurich-based employees has been arrested on allegations of stealing private customer information, according to the Associated Press.

That information, the reports said, was then passed on to German tax investigators. The story first reported by the Swiss weekly SonntagsZeitung.

The arrest of a Swiss private bank employee underscores the importance of having the right security policies and controls in place. It also strengthens the case for data breach insurance.
Banks typically buy the insurance in order to hedge against such breaches.

The insurance covers mishaps caused by low-level employee misconduct and protects against the loss of vendor-controlled data.

Julius Baer recently agreed to pay 860 million francs ($879 million) to buy Merrill Lynch's wealth management operations outside the United States.