Companies have been told by a security analyst that they must concentrate on improving their data protection, which could lead to job roles for IT contractors.

Data security breaches have become more and more prevalent over the past few years and there has to be a clearer focus from companies regarding the issue, according to Simon Heron, internet security analyst at Network Box.

His comments come in response to the new powers granted to the Information Commissioner's Office (ICO), who may now fine firms by up to £500,000 should they deliberately or negligently breach the Data Protection Act.

Mr Heron said that the new legislation was brought in to force companies to take data protection more seriously, though he remains concerned as to how the magnitude of the fine will be worked out.

"The commissioner is being given some discretion as to how much he charges some companies compared to other companies and I can't help but think he's going to come under tremendous lobbying pressure," Mr Heron said.

Almost two-thirds of city workers are unaware of the ICO's new powers, according to a study published last week by information security company Cyber-Ark Software.