Tag Archives: National Westminster Bank Plc

Phishers Force UK Banks To Delay Transfers

Another sign that phishing is taking its toll on the quality of service banks can offer online customers: The Times reports that UK banks are introducing delays in intra-bank payments to try to combat fraudulent transfers caused by phishing attacks:

This week Barclays introduced a one-day delay for transfers. A spokeswoman said: “This delay enables us to carry out checks that seek to prevent fraud.” Halifax also introduced delays in the processing of payments this week, as have Royal Bank of Scotland and NatWest, The Times reports today.

Interesting. Inevitable, perhaps, but this degradation in service can only force some customers back to the physical banks, or to less appealing and less cost-effective services like phone-banking. Running checks on every Internet transfer is going to be time-consuming and expensive for banks. What does this do to banks’ hopes that online banking would effectively replace the high street bricks-and-mortar model?

Counting The Cost Of Online Crime

Phishing is beginning to bite.

British police at a high-tech crime congress (noted by USC Annenberg Online Journalism Review) say that 83% of Britain’s 201 largest companies reported experiencing some form of cybercrime. The damage has cost them more than £195 million ($368 million) from downtime, lost productivity and perceived damage to their brand or stock price.

Much of the damage is being done to financial companies, three of whom lost lost more than £60 million ($130 million). Phishing has hit banks like Barclays, NatWest, Lloyds TSB and 50 other British businesses, Reuters quoted Len Hynds, head of Britain’s National Hi-Tech Crime
Unit (NHTCU) as saying.

Of course, it’s probably much worse than this. Most companies don’t report ‘cyber-crime’ to the police for fear that making the matter public would harm their reputation.  The National Hi-Tech Crime Unit (NHTCU) said that of the companies hit by cyber-crime, less than one-quarter reported the matter to police. But that’s better than two years ago, when NO companies were reporting.

Security experts warn that a new wave of cybercrime attacks will be nastier than what companies have already experienced. David Aucsmith, chief technology officer for Microsoft Corporation’s security and business unit predicted criminals would target banking systems, company payroll and business transaction data.

Here are some other interestnig facts from Bernhard Warner’s Reuters report:

  •  Seventy-seven percent of respondents said they were the victim of a virus attack, costing nearly 28 million pounds.
  •  Criminal use of the Internet, primarily by employees, was reported by 17 percent of firms at a cost of 23 million pounds.
  •  More than a quarter of firms surveyed did not undertake regular security audits.