E-fraud ignored by UK financial firms, says Unisys survey

The DTI is committed to fighting ecommerce fraud, yet a survey out today, by Unisys, reveals that Britain's financial industry is far from taking the matter seriously.

More than 85 per cent of financial institutions have taken no practical steps to counter the threat of electronic fraud, according to a study of 876 firms in the UK. Yet more than half of these firms either recognise the threat, or have already be targeted.

Unisys argues that the problem largely comes down to a lack of training on how to prevent fraud. Robin Bosworth-Davies, principal consultant of Unisys' Financial Compliance Group and former Scotland Yard fraud officer, said: "I never cease to be shocked at the complacency demonstrated by so many financial services companies. Management continues to ignore the evidence that good training for staff pay major dividends in terms of crime prevention."

Bosworth-Davies welcomed steps by the government to improve awareness. The survey found that only 34 per cent of the firms' practitioners and 15 per cent of board members are given fraud awareness training.

"Anything the government does to increase awareness is a good thing." However, he admitted: "Being realistic, we will continue to see complacency until there is a major scandal. I am very, very concerned that managers will not take it as seriously as they need to."

Bosworth-Davies added: "The public is entitled to expect that those who handle their money have taken all relevant precautions to protect their interests. In ecommerce and the development of a company's ecommerce strategy, our perception is that they still have a long way to go."

He warned that the industry could see a major jump in losses due to fraud if it doesn't act soon.