Financial companies need to step up ID protection

Some financial services firms must do more to safeguard customer details against possible ID fraud.

The Financial Services Authority (FSA) has said that some companies are courting the risk of losing confidential information because they do not have sufficient security policies in place.

Of the 39 companies assessed in the FSA survey, almost half provided staff with no data security training.

The FSA said that small and medium-sized financial firms tended to be more guilty of gaps in their security measures, lacking an “awareness that customer data is a valuable commodity for criminals”.

Philip Robinson, the FSA’s director of financial crime and intelligence, said: “It is worrying that despite increased public awareness of the impact that identity theft can have on customers, many firms are still not taking the risk seriously.”

The FSA review covered the data systems and controls of a number of banks, building societies, insurance companies and financial advisers.

Date:28 April 2008