A new report by the Treasury Select Committee has claimed that high street banks in the UK are not on top of online fraud, and were still unprepared for dealing with the surge in compromises to internet security .
The report, on competition in the banking system, argued that banks have not done enough to protect their customers from online fraudsters, although the take up of internet banking and financial services has grown dramatically in recent years. The committee recommended that competition authorities look into how banks can improve security on regarding online services .
The report stated "Given that a much greater share of the market is likely to be taken in by the internet in later years it is surprising how little work has been done to improve security, and the lack of detail apparently available to the police concerned us."
However, reported internet fraud in the UK was found to have dropped by 15 per cent from 2008 to 2009, although there was a 14 per cent rise in online banking transactions during the same time period. During the first half of 2010, losses due to online bank account fraud amounted to GBP24.9 million, a 36 per cent reduction compared to the same period in 2009.
John Fingleton, chief executive of the Office of Fair Trading (OFT), told the Committee that there was a "common perception that the internet is susceptible to fraud" despite these figures.
Banks failing on online fraud says MPs report
Financial Services > e-banking > Banking news
Banks failing on online fraud says MPs report
Tue, 05 Apr 2011
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