|
News Index
Next
Previous
Corporate Identity Theft is set to cost businesses £700 million a year by 2020,
an increase of 1,300%, according to the Risk Uncovered Index1 published by
commercial insurer Royal & SunAlliance.
According to the research, large businesses, with over 250 employees, will
pick up the biggest share of costs from corporate identity theft and London
firms are forecast to be hit by the greatest increase in costs at £140 million
by 2020.
The sectors most likely to be affected are communications, banking, finance and
insurance.
Corporate identity and reputation can be damaged quickly in an age of 24-hour
media coverage and internet information.
The increase in businesses affected by this crime is mirroring the increase in
personal ID theft, with one in ten people seeing their personal details used by
thieves to obtain credit.
Although factors such as data security breaches may not be at the centre of many
risk strategies at present, their influence is increasing rapidly.
Without sufficient foresight and the necessary protections put in place there is
the potential for many businesses to be caught out, resulting in a loss of
competitive edge and significant under-performance.
Jon Woodman, director of Risk Solutions at Royal & SunAlliance, explained: “Companies are
increasingly being affected by Corporate ID Theft.
"Many are worried about the risks of fraudsters stealing their company identity,
as this could lead to a loss of competitive advantage or public confidence.
"With identify theft a growing risk facing businesses, it is important to take
measures to minimise exposure to fraudsters and have a good security policy in
place.”
Simon Wallace, Centre for Economic and Business Research added: “We are on the
cusp of a potential boom in corporate identity theft. With almost universal
computer usage and internet coverage in the business environment the potential
for corporate identity theft is more significant than ever.
"Those willing to hack, scam and defraud will find new and technically advanced
methods to open up the necessary loop holes and steal a firm’s identity.
"Business will need to adapt to this risk and must be willing to increase their
spending on new and improved IT security systems in order to fend off attacks
and stay one step ahead.”
Source:
RedAlert
|
