E-banks warned of organised crime threat

Online banking operations are likely to become a major target for organised crime unless they improve their security procedures, according to European security experts.

Internet bank egg was subject to a serious attempted fraud which required little technical skill last week. According to internet fraud specialist Anthony Riem, partner at PCB solicitors, this may have been the work of an organised crime league.

Riem said: "Internet banks are tempting targets for organised crime, as the attack on egg shows. Much-publicised security breaches such as Powergen and Barclays will only encourage criminal activity. Tools are easily obtainable and it is only a matter of time before a large online crime takes place."

Eastern European criminals may already be targeting operations in the UK. Deri Jones, from security testing firm NTI Monitor, said: "The news two Kazakstan computer designers demanded $200,000 in exchange for financial tycoon Michael Bloomberg's database is just one of the many examples of crimes of this kind. In Eastern European countries, understanding of technology is high but remuneration is relatively low, which may cause people to turn to crime."

The lack of legislation is also an issue, according to Stein Schjolberg, a Norwegian judge who specialises in computer criminal laws around the globe. He said: "Computer attack, unlike murder or robbery, is still not universally recognised as crime. Laws to fight it are typically found only in industrialised nations that depend on computers."

Jones concluded that it is difficult to achieve 100 per cent security in an online environment but responsibility to protect against fraud and crime must fall on the banks, utilities and service provide