Out-Law / Your Daily Need-To-Know

Real-time cyber threat alert system to be operational in UK banking sector next year

Out-Law News | 24 Sep 2014 | 2:35 pm | 1 min. read

A new real-time information channel is to be deployed in the UK next year to help banks combat cyber security threats, fraud and financial crime.

The Financial Crime Alerts Service (FCAS) will see "real-time intelligence" about terrorist financing, money laundering, bribery and corruption, cyber security and online crime, fraud and other emerging risks shared with banks, the British Bankers' Association (BBA) said.

The intelligence provided through FCAS will come from 12 government and law enforcement agencies, including the National Crime Agency. The BBA said the new information portal, to be provided by BAE Systems Applied Intelligence, will be operational by "early 2015".

"The new alert service will allow the sector to react more swiftly than ever to major incidents and allow industry financial crime professionals to spot emerging problems and threatening criminal trends," the BBA said in a statement.

BBA chief executive Anthony Browne said: "This alerts system is a powerful new weapon against fraudsters, cyber criminals and other crooks intent on stealing our customers’ money. Receiving real-time alerts from such domestic and international bodies, including the National Crime Agency and 11 other government and law enforcement agencies, will be vital intelligence for the army of staff banks have already hired to combat these threats. This service is a shining example of how banks and government can work together to benefit all customers."

The BBA said that an existing information-sharing partnership already established between banks and the National Fraud Intelligence Bureau has already helped prevent £100 million of fraud.

Earlier this month, The Joint Committee of the European Supervisory Authorities (JCESA), which represents the European Banking Authority, European Securities and Markets Authority and European Insurance and Occupational Pensions Authority, said banks and other financial institutions "do not yet appear" to sufficiently understand the IT risks they face.

Banks must strengthen their governance over arrangements with IT suppliers to address rising concerns about IT outages and cyber security breaches, JCESA said.