Banks have been systematically understating the level of cyber crime in the banking system, said Andrew Tyrie, the chairman of the Commons Treasury select committee.
The comments by Tyrie comes after a Treasury Select Committee hearing into cybercrime and fraud held as part of its inquiry into the ‘Treatment of Financial Services Consumers’, and Tyrie has agreed to raise the issue with banks and regulators.
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The hearing received evidence from Richard Clayton, a senior researcher in security economics at the University of Cambridge, who cited that banks are reluctant to report the actual scale of cyberfraud as they do not want to scare customers.
Highlighting the futility of the financial fraud statistics, Clayton disclosed in the hearing that financial cybercriminals are stealing double the money from bank accounts as actually reported by banks.
A similar issue was raised in July 2013, when a Home Affairs Committee report on e-crime accused British lenders of letting cybercriminals carry out crime by failing to report or investigate fraud.
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