18 October 2017
visit www.avoka.com

FSA to crack down on financial fraud risks

26 October 2004  |  7438 views  |  0 cash - swag bag sterling

The Financial Services Authority is to step up its examination of bank anti-fraud safeguards in an effort to cut down on soaring levels of financial crime.

Launching the watchdog's new fraud policy at a conference today, Philip Robinson, FSA financial crime sector leader, says financial firms need to improve their defences against the growing threat of fraud.

Pointing to survey stats and industry reports, Robinson noted that the financial sector alone is estimated to be losing some £11 bn per year from economic crime.

"One area of those losses is plastic card fraud, where despite the industry's huge investment in clamping down on fraud Apacs tell us that losses were £402 million in 2003, as compared with £97 million in 1994," says Robinson. "There is a fraudulent transaction every eight seconds."

The FSA is calling on all involved in the fight against fraud in the financial services industry — firms, trade associations, regulators, government and the police — to work together to make life more difficult for the criminal.

As a contribution to this effort, the FSA will be taking a closer interest in how firms and their senior management tackle fraud risks.

Says Robinson: "Over the coming months we will be steadily be paying more attention to firms' arrangements for managing their fraud risks as part of our general supervising and other regulatory activities."

This will entail an examination of culture, senior management interest, staff training and investment in systems to detect fraudulent behaviour.

"We will be looking for effective and proportionate fraud management systems and controls," says Robinson. "But we will not be down like a ton of bricks on firms who have the misfortune of suffering fraud. We need a culture where senior management manage fraud risks well and learn from the frauds and near misses that they will inevitably suffer over time. We are not in a zero failure regime here. It is only with firms whose systems and controls fall far short of the appropriate standard that we might wish to use our enforcement tools."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UK banks join cross-industry effort to combat ID fraud

UK banks join cross-industry effort to combat ID fraud

26 October 2004  |  5449 views  |  0 comments
UK card fraud soars

UK card fraud soars

07 October 2004  |  6401 views  |  0 comments
Chip and PIN backfires as cards go astray in the post

Chip and PIN backfires as cards go astray in the post

15 September 2004  |  7534 views  |  0 comments
UK banks pledge £3m to card crime unit

UK banks pledge £3m to card crime unit

12 August 2004  |  5897 views  |  0 comments
UK government launches anti-fraud ID Web site

UK government launches anti-fraud ID Web site

15 July 2004  |  4823 views  |  0 comments
Over a million UK shoppers hit by online fraud

Over a million UK shoppers hit by online fraud

08 July 2004  |  6100 views  |  0 comments
UK card fraud dips but CNP continues to rise

UK card fraud dips but CNP continues to rise

08 March 2004  |  5707 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Register nowvisit www.innotribe.comvisit www.vasco.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15309 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8488 views comments | 16 tweets | 22 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
8003 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7526 views comments | 13 tweets | 9 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6636 views comments | 8 tweets | 16 linkedin

Featured job

Competitive base + commission + benefits
New York City, NY - USA

Find your next job