At least 40,000 Eagle Insurance Company policy holders in Botswana risk being defrauded after a compact disc containing their personal details went missing in South Africa.

The disc disappeared over a year ago - in August 2008 - but it was only yesterday that the insurance company started writing letters to customers and brokers urging them to rush to banks to change their details because their accounts are at risk.

Eagle is a subsidiary of Zurich Insurance Company in Switzerland. Yesterday, Zurich Insurance announced that they are launching an investigation into the loss of the back-up data tape containing details of 40,000 Botswana customers.

Depending on the policy, the lost data could include addresses, telephone numbers and bank details of the customers.

Speaking to Mmegi from Johannesburg yesterday, Zurich Insurance Southern Africa chief executive officer, Guy Munnoch admitted the affected customers are now exposed to risks such as fraudulent use of banking details. It is possible that funds could be withdrawn from customers bank accounts without their knowledge or authorisation.Munnoch explained that the loss of such information could lead to misuse of a customer's personal information and identity theft and finally insurance risk.

Eagle Insurance started mailing its customers in Botswana yesterday warning them that they may have been affected by the loss of the back-up data and advised them on remedial actions.

The letters set out the precautionary measures that customers, brokers and other third parties can take and what the company has put in place to support them. Zurich Insurance said the back-up data was lost during a routine transfer in South Africa to a storage centre. Zurich South Africa's investigation into the loss of the back-up has revealed certain deficiencies in the management of data tape security procedures in South Africa, Munnoch said. However the company says there has been no evidence to suggest that data has been misused or compromised so far, although Munnoch did not rule out the possibility. In such cases, he said they have advised customers and brokers that they will re-reimburse any loss.

Shiran Puvimanasinghe, chief executive officer of Eagle Insurance Botswana was not willing to divulge more information except to say that the incident has not affected customer confidence.

He preferred to stick to the press release issued by the Zurich headquarters early yesterday. But from Johannesburg, Munnoch said: "Individuals will make up their own minds, however, we offer our sincere apologies to all our customers.

A leading firm of specialists in data storage is conducting a thorough review of the facts to determine the events that led to this unfortunate loss of back-up. While this investigation is underway, we have taken steps to improve the security around the transportation of all Zurich's data tapes".

"We have written to the affected customers explaining the matter and setting out the precautionary measures that we recommend they take and will reimburse them for any loss they have suffered as a direct result of the data that we held for them having been misused".