Banks join initiative to tackle online fraud

BANKS are joining forces with the Scottish Financial Crime Group this week to launch "e-Crime Scotland", an initiative aimed at tackling growing threats of online fraud and cybercriminality.

The internet-based venture is based on the model of "e-Crime Wales" following a suggestion in 2007 by Sarah Dougan, managing director of Glasgow-based e-Security Exchange, who described it as "long overdue".

It comes as firms have expressed growing alarm over the levels of illegal activity such as website fraud and hackers stealing confidential data. Such theft has been estimated to cost a blue chip company as much as 1 million a day in lost business.

The Forum of Private Business found that about half of small to medium-sized businesses surveyed are now hesitant about increasing their business online, especially when it comes social networking. It asked 5,800 SMEs to disclose what digital media they used in a typical working day, and 52 per cent said they had used Linkedin or Facebook, but of that percentage half queried whether such websites were useful or safe.

FPB spokesman Phil McCabe said internet-based networking tech tools "do hold a great deal of potential" for companies," but he conceded that firms were wary of spam e-mails and electronic fraud.

"E-crime Scotland" launches at the seventh annual Scottish Financial Crime Group conference in Edinburgh on Thursday, when experts will discuss how to fight financial crime in the economic environment.

Speakers from Clydesdale Bank, Lloyds Banking Group, Royal Bank of Scotland and Standard Life will be joined by David Watt, chief executive of the Institute of Directors Scotland. His chairman Raymond O'Hare said: "All businesses should be looking to technology to help them be more efficient, customer focused and profitable. Social networking is not for everyone and where used, a balance must be maintained between such usage and operating safely online."