City of London Police warns that the overwhelming majority of crimes perpetrated by online hackers are never even reported, let alone prosecuted, with losses totalling billions of pounds.
In a new report, the police group, which leads the way in tackling fraud and internet-based crime in Britain, says that official data “vastly underestimates” the problem by only taking into account cases that are brought to the authorities.
3.7 million crimes of this nature were recorded by the UK government between 2013 and 2014. However, an estimated 1.2 million crimes went unreported by businesses, financial institutions and individuals between 2013-14, costing victims over £12 billion. This brings the total number of cyberattacks up to 5 million for the period.
7 in 10 cases of fraud are carried out online, says the London Assembly’s police and crime committee – and criminals only need “limited technical knowledge” to carry out scams.
Even more worryingly, some large businesses actively decide against reporting cases of fraud and successful hacks, believing that this could have commercial implications or could harm their reputation.
“In these cases, businesses are effectively absorbing the cost of the crime as a running expense,” say the report’s authors. “Ultimately, it is likely that these costs are passed on to customers.”
A survey of corporate decision makers across Europe finds that chief executives in more than half of the businesses canvassed take responsibility for the issue of cybersecurity.
Regulatory technology - aka RegTech - should become a priority for bankers as regulators increasingly focus on risk data aggregation, argues a white paper from Wolters Kluwer.
Despite significant cost-cutting in recent years, management consultancy McKinsey says the world’s biggest banks need more radical business plans.
With its estimated market capitalisation reduced to US$235bn, Wells Fargo’s current valuation is some US$4bn less than its rival.