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Banks and regulators must team up against cybercrime

Cybercrime is a global concern, and prevention is vitally important to cut fraud. Collaboration with government agencies and improved consumer awareness will give banks a better chance of minimizing online attacks.

Given the continued growth of digital channels, governments and financial institutions are under great pressure to strengthen cyber security. The Office for National Statistics has started tracking and publishing the number of cyber offences: there were 5.1 million incidents in 2015, meaning an average of one in 12 consumers fell victim to cyber fraud.

Collaboration between banks and government agencies is key to tackling this. The Bank of England has launched a new framework to test for cyber vulnerabilities. By tracking key performance indicators that can assess the maturity of an organization’s ability to detect and respond to cyberattacks, the aim is to improve the industry’s resilience to such threats over time.

Meanwhile, the British Bankers’ Association has launched a consumer awareness drive, Know Fraud, No Fraud, to help people differentiate between genuine calls/emails and scams. Banks must do their part to raise awareness of this campaign, both in-branch and electronically. This will help consumers become more vigilant about fraud cases and prevent them from becoming victims, which in turn will reduce the costs banks face refunding defrauded consumers.

By Resham Karira, Retail Banking Analyst

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