25 million personal records lost by the government! Identity fraud on the increase! It's enough to make anyone want to return to good old paper systems, but I hope this will provoke an altogether more useful question: "How do we ensure the security of computerised records?".
The answer isn't rocket science. In fact it's implemented in many, perhaps most, systems: the software is written to prevent unauthorised access, unauthorised copying and it is encrypted. Lets hope that the government learns from these mistakes and ensures the systems are in place to stop data loss from happening again.