Scottish financial services industry told to be on guard against terrorists targeting computer networks

Published on Saturday 24 October 2009 14:49

SCOTLAND'S financial services industry must be on its guard against both old-fashioned and hi-tech threats from criminals, security experts have warned.

From "cyber-criminals" hacking in to computer networks to cash-delivery vans being held up at gunpoint, the police have cautioned banks and other finance firms to be wary of the threats and advised on how to tackle them.

But mergers, downsizing and restructuring could also leave firms exposed to attacks by criminals, according to the Scottish Financial Crime Group (SFCG).

Major structural changes resulting from the financial crisis present opportunities for thieves both inside and outside companies.

Figures from the CBI show that financial crime costs the UK about 20 billion a year, with individuals losing at least 2.75bn.

Disgruntled former employees supplying information to criminals or low-paid staff being bribed or blackmailed into handing over data are among the key risks, the SFCG will warn at its annual conference on Thursday.

The group – which brings together the police and forensic accountants with representatives from the banks and other financial services firms – will also highlight the threat from "old-fashioned" physical crime.

Delegates will be told about the "marked increase" in robberies from cash collection vans and the risk of bank managers and their families being held hostage.

Electronic – or "cyber" – crime will also be on the agenda, with security experts exploring the threat of "cybergeddon", a term coined by the US Federal Bureau of Investigation (FBI) to describe a terrorist attack on computer infrastructure.

Senior FBI figures have described "cybergeddon" as the third greatest threat to the United States, behind the use of weapons of mass destruction or conventional bombs.

The FBI is worried that terrorists may try to destroy computer networks, crippling the financial markets and even bringing down public utilities that rely on electronic networks to control power distribution.

On a smaller scale, threats such as the cloning of credit cards or sophisticated viruses that can infect the computers of online banking customers and steal their passwords will also be discussed at the conference.

The SFCG said it was important for financial service firms to share intelligence about threats and praised the banks for already swapping information on risks to their systems.

Iain McMillan, director of CBI Scotland, who will address the conference, said: "The financial services sector faces huge challenges and has undergone significant restructurings over the last year.

"But it is vital for Scottish businesses that we remain vigilant to fraudsters in their various guises.

"Financial crime is portrayed by some as a victimless crime. It isn't. The reality is that it costs at least 13.9bn, increasing to 20bn when income tax and EU-related fraud are taken into account."

McMillan said lessons learned in the financial services sector could also be passed on to other parts of the economy. With the public sector defrauded of at least 6.8bn a year, he said the cash saved could help save jobs and increase spending on health and education.

Ian Todd, UK operations director at security specialists the Olive Group and the opening speaker at the conference, said: "This event gives us all the opportunity to consider how best to tackle financial crime.

"By working in partnership with industry experts and those from law enforcement agencies who are tasked with catching and convicting financial criminals, we can all learn how best to protect our businesses from the ever-changing threat posed by highly sophisticated fraudsters."