TechnologyAccounting SoftwareFSA urges firms to act over digital threats

FSA urges firms to act over digital threats

The Financial Services Authority (FSA) has called on a range of firms to improve their security systems as a defence against hackers, fraudsters and other digital threats.

Link: Staff the greatest threat to firms’ security

The regulator said that while some larger firms, especially in the banking sector have implemented appropriate protection, smaller firms and other sectors are less prepared.

The FSA’s warning came just days after various security breaches were revealed in online bank Cahoot, as well as Morgan Stanley, although the FSA’s release was not related to those particular incidences.

Philip Robinson, financial crime sector leader at the FSA, said that, in the fight against fraud, firms will have to run to stand still if they are to protect their assets and their customers.

‘Hackers and fraudsters are refining and improving their techniques as we speak. Having been the target of criminals in recent times, via the internet and other technologies, the major banks tend to have strong defences.

‘But there is no room for complacency and criminals will seek to exploit vulnerable points where they can find them, including in other sectors or smaller firms,’ he said.

The FSA’s call was made in Countering financial crime risks in information security, which highlighted the need for senior management to take on responsibility for information security.

‘Firms should follow a preventative approach rather than reacting to a situation once it has happened, which can be costly and damaging to reputation,’ said Robinson. ‘Consumers must also take steps to prevent attacks from fraudsters, by taking care when disclosing their personal details or following the security tips offered.’

The report, which reviewed 18 firms, is part of the FSA’s approach to fighting fraud. Other threats it identified included recruitment, instant messaging and handheld computers.

Related Articles

Accountancy in the digital age: Flexibility, agility, efficiency

Accounting Software Accountancy in the digital age: Flexibility, agility, efficiency

2w Pegasus Software | Sponsored
Sage purchases Intacct in its largest ever acquisition

Accounting Software Sage purchases Intacct in its largest ever acquisition

5m Alia Shoaib, Reporter
5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
UK behind foreign markets in digital accounting, but gap is narrowing

Accounting Software UK behind foreign markets in digital accounting, but gap is narrowing

7m Alia Shoaib, Reporter
The rise of the progressive accountant

Accounting Software The rise of the progressive accountant

7m Emma Smith, Managing Editor
Making Tax Digital: Revolution or revolt?

Accounting Software Making Tax Digital: Revolution or revolt?

8m Emma Smith, Managing Editor
Making Tax Digital: Is HMRC’s recent system fault a cause for concern?

Accounting Software Making Tax Digital: Is HMRC’s recent system fault a cause for concern?

8m Emma Smith, Managing Editor
Four reasons why SME owners should switch to cloud accounting

Accounting Software Four reasons why SME owners should switch to cloud accounting

9m Emma Smith, Managing Editor