UK finance firms urged to tighten up on data security
FSA presses financial firms to take greater precautions to stop data leaks
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.’