Resources for Federal Financial Institutions Examination Council (FFIEC)

Locking down financial security

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One might reasonably expect the finance services sector to be well in credit when it comes to electronic security. But losses from online fraud continue to rise. Danny Bradbury combs through the books.

Finance is one of the most heavily regulated industries, so electronic security in this sector should be exemplary. But why is online fraud on the rise and what are financial services firms doing about this and other kinds of financial scams?

While overall card fraud is falling, instances of online fraud are rocketing, according to UK payment association Apacs. In 2006, internet fraud reached £154.4m, accounting for 73 per cent of card-not-present fraud. That's up from £117m the previous year, when it accounted for just 65 per cent of card-not-present fraud. Overall card-not-present fraud is expected to rise again in 2007.

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