Downplaying identity fraud may cost heavily
The identity fraud is increasing in the UK at an alarming rate. Banks and financial institutions should take stern steps to check the ID fraud.
London (Longdogfinance) May 06, 2008 :Identity fraud is increasing in the UK and is making the credit crunch situation more gloomy. Financial services companies must change their attitude and tighten the security terms to curb the rise in identity fraud. The FSA has issued a warning following a review of data security systems and controls at 39 firms including banks, building societies, insurance companies and financial advisers.
Although FSA found examples of good practice across the industry, it said firms are underestimating the risk of data loss and fraud to their businesses . The main threat comes from the side of fraudulent customers. FSA complained that on occasions of significant data loss, firms seemed more concerned about adverse media coverage than on being open and transparent with their customers.
It is worrying that, despite the increased public awareness of the impact that identity theft can have on customers, many firms are still not taking any serious step. Customers have every right to be confident that firms are doing everything reasonably possible to keep their personal and financial details safe. If data theft and identity fraud continues, customers will loose faith on the banking system. Prime Minister Gordon Brown has ordered for an urgent review after the human resource manager of Revenue and Customs said it had lost data on 25 million people, exposing them to the risk of identity theft and fraud.
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