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British Airways is facing a record fine of more than £183 million over a customer data breach.

The penalty comes from the Information Commissioner’s Office, which says that personal data relating to around half a million passengers was compromised during a hacking incident last year.

Details of the hack – which is believed to have begun in June 2018 – were first revealed by the airline in September of that year.

The ICO’s investigation found that a variety of information was compromised by “poor security arrangements”, including log in, payment card and travel booking details as well as customers’ names and addresses.

Part of the scam involved passengers being diverted to a fake website, through which their details were harvested.

The £183.4 million fine is the largest the ICO has ever handed out, and represents 1.5 per cent of the firm’s turnover. The General Data Protection Regulation (GDPR), which came into force last year, means firms can be fined up to 4 per cent of their annual turnover for data breaches.

“When an organisation fails to protect [personal data] from loss, damage, or theft, it is more than an inconvenience,” says Information Commissioner Elizabeth Denham. “When you are entrusted with personal data you must look after it. Those that don’t will face scrutiny from my office to check they have taken appropriate steps to protect fundamental privacy rights.”

Alex Cruz, chairman and chief executive of British Airways, says he is “surprised and disappointed” by the penalty. “British Airways responded quickly to a criminal act to steal customer’s data,” he says. “We have found no evidence of fraudulent activity on accounts linked to the theft.”