MPs have backed a move in parliament to make it an illegal offence for a worker to "recklessly" disclose anyone's data.
The move would affect both public and private sector workers and would cover any intentional or reckless disclosure of people's details.
Some ministers argued that the move was premature as inquiries into breaches like the one seen by HM Revenues & Customs, were still underway.
However, the government was defeated by four votes.
A similar amendment had been submitted by the Conservatives, but it only focussed on public sector and government workers.
Baroness Miller, the liberal democrat who put forward the amendment, said: "If you are a member of the public it doesn't actually matter if it is the public or private sector that is losing your data. The fact is your data has been lost."
A recent survey by Websense revealed that up to 25 per cent of professionals believe that top bosses should be put in prison for data loss.
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Centennial Software was acquired by FrontRange Solutions (www.frontrange.com) in April 2008. FrontRange Solutions develops Service Management, IT Infrastructure and Customer Relationship Management solutions that scale with the needs of mid-sized and distributed enterprises. The company – through its FrontRange, HEAT, GoldMine, Enteo and Centennial brands – offers a unique portfolio that has been chosen by more than 150,000 organizations worldwide to help improve the effectiveness and reduce the cost of interacting with external and internal customers.
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