Collaboration between financial institutions is the vital ingredient in the fight against crime, according to research commissioned by LogicaCMG
The study, which entailed interviews with 100 risk managers across the spectrum of UK financial services, finds that nearly two-thirds (60%) of respondents believe the industry working together is a 'must' in tackling crime.
Collaboration will not only help the industry gain a greater understanding of the issues, say respondents, but will also directly impact on the problem with 59% believing that it would lead to a cut in the volume of financial crime.
The rise of new threats, such as phishing and virus-writing have raised the stakes for financial firms, and pushed the issue higher up the agenda. However, 83% of the LogicaCMG sample say they have no dedicated budgets for the battle against crime.
This lack of investment is exacerbated by institutions focusing on tackling certain hotspots, says LogicaCMG financial services MD Guy Warren, rather than creating a holistic strategy across the business. The focus on only some areas of crime, coupled with the apparent lack of investment, shows other areas including identity theft, 'cardholder not present' fraud and fraudulent claims are being left open to attack, he says.
"Currently criminals are seeking out and targeting the weakest links in the industry," says Warren. "If the wholesale banking community improves security, criminals will instead turn their attention to retail banking or insurance. Only by working together collaboratively can the institutions put together a united front in this fight."