“Cyber crime” poses a major threat to the stability of UK banks. That’s one of the findings in last Monday’s Systemic Risk Survey from the Bank of England. It’s not the top-most concern — that post is still held by the risk of an economic downturn, followed by sovereign risk. But nearly a quarter of risk managers put operational risk as a major worry, and in this category the biggest threat was seen as cyber security. The rise in the cyber crime threat was enough to warrant the headline in the Financial Times.
Cyber security was one of the key topics we discussed last month in the FICO Fraud Council. Many banks are now looking to merge their cyber security and fraud departments, with an aim of getting a more comprehensive view of the customer that can inform all defense systems.