A report from consultancy KPMG says many organisations are still using paper-based records for pre-1998 archives and could be prosecuted under the Data Protection Act if they do not digitise records by October.
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While the majority still have computer-based systems for the management of new data, larger organisations that still rely on large volumes of paper could be liable if they do not meet the deadline.
“Transitional relief is one of the least well publicised aspects of the Data Protection Act. If companies are relying upon it, it's a question of when, not if, they need to get their houses in order,” said Steve Kenny, privacy services leader for KPMG.
A recent survey by Hitachi Data Systems revealed that 80% of British firms are using data classification methods to prioritise and arrange their records.
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