The House of Lords has recommended the Government introduce legislation to make banks liable for losses incurred as a result of electronic fraud and suggests that the Government consult on a “data security breach notification” law.
In their Science & Technology Report they discuss financial fraud such as phishing and personal identity theft. The report notes that “figures on the scale of the problem are hard to come by. Indeed, the lack of data on identity theft is symptomatic of a lack of agreed definitions or detailed statistics on almost all aspects of Internet security”.
Chapter 5 considers in detail the lack of security measures in the the banking industry. It suggests that the lack of a single regulatory regime adds to the problems.
