Leading Financial Organisations Give Evidence on Internet Security

By Brian Turner

A House of Lords committee investigating internet security has listened to evidence from the UK payments association (APACS), the Financial Services Authority (FSA) and Visa.

The organisations reported on the level of online threat to consumers, the types of security attacks being carried out and how financial services organisations are working with international law-enforcement groups to combat security issues.

The House of Lords launched the enquiry in July 2006. It is focusing on the nature and scale of online security threats to private individuals and looking at whether more can be done by the government to address the problem. It is also considering whether the regulatory and criminal law framework requires strengthening to be effective against cybercrime.

In its statement to the committee APACS emphasised that while UK banks make every effort to combat data theft, they are reliant on the online behaviour of the customer. Customers give away details to fraudsters, but banks work to help prevent that happening.

APACS also noted that while sixteen-million people bank online only a tiny number are victims of online banking fraud.

APACS also said that it has mechanisms to share information internationally about issues such as phishing and works closely with law enforcement agencies on security issues.

The House of Lord’s investigation will run until the late spring or summer of 2007. A report of the committee’s findings will then be issued.