HSBC has admitted losing a computer disc containing the personal details of 370,000 customers but says the risk of fraud is limited.

The banking giant has revealed that the disk - containing customer names, dates of birth and life insurance cover details - was lost after being sent in the post about four months ago.

However, it says the disk was password protected and didn’t contain addresses or bank account details.

The bank now faces a potential fine from the Financial Services Authority. The regulator has previously fined Nationwide and Norwich Union for similar breaches of data protection in the past year.

Kevin Mountford, head of savings at moneysupermarket.com, said: “While HSBC has publicly stated that the possibility of any fraudulent activity against customers as a result of this loss is limited, there is still a risk to these so people must now be even more vigilant, regularly checking their accounts online, requesting mini-statements at the ATM and going through their statements with a fine toothcomb.

“If anyone sees even the smallest irregularity, they should report it immediately to HSBC.”

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