Feeds

MPs criticise banks on online fraud despite declining losses

Official figures put fraud bill at £46.7m for 2010

Build a business case: developing custom apps

A House of Commons Treasury Select Committee report has criticised banks for failing their customers in the fight against online fraud.

Members of the influential committee criticised banks as being "unprepared" to deal with internet fraud as part of a wider study into retail banking, whose main conclusions called for greater transparency on charges and steps to make it easier for consumers to switch accounts.

MPs criticised banks on fraud prevention despite official figures from UK Payments, published last month, that show online banking fraud losses totalled £46.7 million in 2010, a 22 per cent fall on figures for 2009. Better fraud detection software from banks and improved customer awareness of the need to guard against phishing scams and malware is credited with the improvement.

Security experts said it was wrong to tar all UK banks with the accusation of being weak on cybercrime.

David Belchick from IT security software developer ActivIdentity, said: "The Treasury Select Committee was correct in highlighting the issue of online banking security as recent research shows that attacks on large corporations such as banks has doubled since 2008, and the damage costs more than tripled.

"While we agree with the Treasury Select Committee that there can be improvements in online security, we caution against the typical rush to judgment that all banks are not doing enough," he added.

Belchick said that if MPs were serious about banking security they should impose tougher regulations, such as the requirement to provide two-factor authentication for bank logins (a step that would help firms that sell the technology, of course, such as ActivIdentity).

"Regulatory guidelines for strong, versatile authentication have been established in the United States, India and other nations. If the Treasury Select Committee desires real change, it will establish a panel or organisation, such as the UK Payments Association, to set regulations to protect all UK banking customers." ®

The essential guide to IT transformation

More from The Register

next story
Rupert Murdoch says Google is worse than the NSA
Mr Burns vs. The Chocolate Factory, round three!
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Germany 'accidentally' snooped on John Kerry and Hillary Clinton
Dragnet surveillance picks up EVERYTHING, USA, m'kay?
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
Who needs hackers? 'Password1' opens a third of all biz doors
GPU-powered pen test yields more bad news about defences and passwords
Think crypto hides you from spooks on Facebook? THINK AGAIN
Traffic fingerprints reveal all, say boffins
Microsoft cries UNINSTALL in the wake of Blue Screens of Death™
Cache crash causes contained choloric calamity
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.