The disks contain information on 25 million individuals, including names, addresses, date of birth, national insurance numbers, and in some cases bank details.
Gordon Brown told MPs: “I profoundly regret and apologise for the inconvenience and worries that have been caused to millions of families who receive child benefits.”
The disks were misplaced after being sent from HM Revenue and Customs to the National Audit Office by internal post.
Simon Morrissey, partner at law firm Lewis Silkin, said sending the disks in this way is a breach of the Data Protection Act.
The Metropolitan Police Service and the Independent Police Complaints Commission are conducting separate investigations into the loss.
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