People would prefer to report online fraud to a dedicated e-crime unit.

 

According to a survey by Infosecurity Europe, 95 per cent of respondents said that they would rather deal with a specialised body rather than go through APACS and/or the financial services firm with whom the fraud took place.

 

The Earl of Erroll, a cross-bench member of the House of Lords, said he was not surprised by the results, and commented: “I think that people instinctively realise that you cannot expect people or organisations to report their own shortcomings reliably.

 

“I am delighted that money is finally being put into out into the new National Fraud Reporting Centre and is actually going to be given some teeth in the form of the new Police Central e-crime Unit.”

 

In a House of Lords debate last week, Lord Broers, the chairman of the House of Lords Committee on Science and Technology, said that whilst customers currently report their e-frauds to the banks, it is not in the banks' interests to draw attention to the fact that their anti-fraud systems have failed.

 

The house concluded that there is a need for specific legislation - similar to the Bills of Exchange Act 1882 - which specified that if a bank honoured a forged cheque, the bank, not the customer upon whose account the cheque had been drawn, was liable.