Trust: how would we survive without it? Mal Fletcher comments

When the NAO failed to receive the CDs, two more were made and sent, this time more securely. The second batch arrived (though of course, sending them this way means they can still be tampered with en route). The first batch are still missing.

The government says there is no evidence of criminal activity as yet, but that doesn't mean that fraudsters aren't involved.

Having gained this kind of information, there are many ways criminals might use it. Because some people use their children's names as online banking passwords, criminals may easily access bank accounts.

Also, fraudsters may ring up a bank's staff pretending to have misplaced their password. Because they can give other relevant personal information, like a national insurance number, new passwords may be issued to them. As one official put it, "having a national insurance number is as good as having a passport."

At the very least, fraudsters could order new credit cards in someone else's name and then rack up huge credit bills on each one. Even before this situation, the Home Office estimated the cost of identity fraud in the UK at £1.7 billion.

Competence, an essential ingredient of trust, has been massively compromised. The government's accountability is also under question.

The Chancellor and Prime Minister were alerted about the situation on November 10. Yet they did not inform the police until five days later and the banking industry, whose cooperation in spotting potential fraud is vital, was informed only last Friday.

In the short term, it is the uncertainty as to the whereabouts of this data that causes most concern for people. There is the nagging sense that the information could be in the hands of someone who plans not to use it for weeks or months to come. Suddenly, people may find themselves faced with the costs of a bank loan they didn't know they had, or credit bills they knew nothing about.

Of course, there are procedures for dealing with identity fraud and banks are normally well insured. However, as someone who recently experienced one form of ID fraud, I can tell you that banks are slow to follow-up unless the customer is prepared to chase them.

It's an extremely unsettling and frustrating experience, to say the least. And, once a claim has been made, one can't be sure of one's true financial status until the bank has investigated.

Yes, it was inspirational to see the pictures of the Queen and the Prince as they celebrated their many years of commitment. Like any long-married couple, they have worked hard to achieve a high level of trust.

It was sad that, on the same day, people across Britain found that their government has squandered precious trust. It will take a great deal of hard work to win it back.