Banks, building societies and insurance companies are underestimating the risk of economic crime following data compromise incidents, claims the FSA.

These can include lost or stolen laptops, information leaks by staff or insider activity or insufficient security by suppliers.

The warning follows publication of the FSA’s review of systems and controls for data security at 39 firms including banks, building societies, insurance companies and financial advisers.

Philip Robinson, the FSA’s financial crime and intelligence director, said: ‘Firms getting data security right is a key priority for the FSA and we expect the industry to raise its standards.

‘We will follow up on this work with firms and will not hesitate to take action if future breaches are found.’

Andrew Clark, partner in the forensics practice at PricewaterhouseCoopers LLP, added: ‘They should consider the problem from both the criminal’s perspective and that of the regulator, thus helping to avoid possible losses and protecting their
reputations.’