We’re building a virtual ring of steel to tackle the threat of cyber crime

UTTER the words “cyber crime” and many minds will conjure up an image of an awkward teenager, tapping away in their bedroom well into the early hours. But cyber crime can be much scarier than that.

Threats today also come from criminal networks and foreign governments that deploy cyber weapons. Some of these assailants are trying to make thousands of pounds at the banks’ expense. Others may want to steal sensitive commercial information or disrupt the financial payments system.

Why does this matter to me, you might ask? If your bank account has ever been plundered by a fraudster, you will be fully aware of the emotional – as well as financial – damage that can be caused. Banks work hard to resolve such cases and are driving down the losses. But the criminals’ techniques are constantly evolving and investigations can take time.

As distressing as those personal cases are, it’s when you start to think about the national – even global – picture that the full extent of the challenge is laid bare. Recent reports by the British government and the United Nations have demonstrated the international nature of cyber threats.

A report by the Cabinet Office a few years ago estimated that the cost of cyber crime to the UK economy could be as high as £27bn. A cyber attack on a major financial institution that paralysed its system could cause misery to millions of personal customers and enormous numbers of businesses.

This is why governments, law enforcement organisations, global bodies and banks are taking this menace so seriously.

Banks are taking on thousands of new staff to combat financial crimes, including highly-skilled cyber crime experts. Information-sharing between banks, the police and other parties is also a vital part of this work. Many banks are now participating in the government Cyber Security Information Sharing Partnership that allows data on cyber offending to be shared.

The banking industry has also strengthened its partnerships with law enforcement. Information circulated by the City of London Police’s National Fraud Intelligence Bureau (NFIB) has led to the identification of thousands of accounts that were at risk of or being used to acquire money from victims.

This system will give firms power to spot and stop more cyber-enabled financial crimes. Banks also regularly meet with the City of London Police and the National Cyber Crime Unit at the BBA to share experiences and expertise to address new cyber crime techniques.

Now, the BBA, working with the City of London Police’s Fraud Academy, is creating a “virtual ring of steel” by arranging workshops where police experts can train thousands of bank staff to spot financial crimes and act quickly to protect customers.

However, this is a challenge of genuinely global dimensions. Effective partnerships between the public and private sectors at an international level is needed to respond.

Combating cyber crime is not some nerdish preoccupation of the banks. It goes right to the heart of one of the industry’s central aims – protecting their customers’ assets.

Anthony Browne is chief executive of the British Bankers’ Association (BBA).