SFO drops Telecom security breach probe

The Serious Fraud Office has closed its investigation into an alleged breach of Telecom's database that allowed a rival to access sensitive customer information, saying it found no evidence of criminal offending.

A marketing company working for Telecom's rival, Slingshot, was earlier this year accused of accessing the telco's Wireline database, which contains personal customer information.

The SFO received a complaint from Telecom in January, but SFO's general manager of fraud and corruption Nick Paterson said investigations by staff found no evidence of criminal offending.

Asked whether this meant there was no breach of Telecom's database, Paterson said the SFO's remit was around criminal offending.

"That's what we are concluding on and we are making no comment on any other sort civil breaches.

"Whether or not there was access to the database I'm not in a position to say one way or the other," he added.

The Serious Fraud Office receives about 400 or 500 complaints per year from which it opens more than 30 investigations, Paterson said.

Telecom said earlier this month it had made changes to its security settings in the wake of the alleged breach.

However it said it would be inappropriate to offer comment about its own investigations, which were ongoing, it said.

The Privacy Commissioner said its inquiries were also continuing.

- NZ HERALD ONLINE