European banks put cyber crime under the lens

European banks this week announced plans to improve cooperation and develop better alert systems with law enforcement in a bid to be better informed of the latest malware, cyber threats and fraud.

Earlier this week Europol's European Cybercrime Centre (EC3) said it had signed a memorandum of understanding with the 4500 institute-strong European Banking Federation to “intensify cooperation between law enforcement and the financial sector”.

Similarly, the British Bankers' Association (BBA) yesterday revealed that 12 government and law enforcement agencies are to use a “pioneering financial crime alert system” to warn banks about the latest threats in cyber-crime and fraud.

Cooperation between the EC3 and EBF is expected to see an exchange in expertise, statistics and other strategic information, including data on the latest cyber threats and new malware and evolving means of payment fraud.

Such sharing is not unique between law enforcement and financial institutions, where previous collaborative action has seen organised criminal groups come to be investigated, prosecuted and jailed for skimming and forging cards.

The plans announced by the BBA are to be leveraged by various government departments and other agencies to keep banks abreast of the latest threats under the banner Financial Crime Alerts Service (FCAS).

FCAS will assist financial crime professionals to spot emerging problems and new trends. The system – which is due to go live in early 2015 – will include warnings on cyber crime, fraud, terrorist financing and money laundering.

BBA chief executive Anthony Brown added that the system could be a ‘powerful weapon' in deterring criminals.

“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."