New technology fuels rising tide of insider fraud

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Fresh diligence is required to combat criminal gangs who are utilising the latest technological developments to commit insider fraud. That was the message from a leading City of London detective this week addressing delegates at a Reliance Security Services conference on November 1st in London. The event was designed to prepare businesses against the dangers posed by organised crime.

The City of London Police fraud team said criminals were using everyday technology products to defraud some of the biggest financial institutions. They gave the example of memory sticks - pen-like devices that are able to hold significant amounts of data and are ideal for thieves looking to steal sensitive corporate information. This makes it is an ideal tool for would-be criminals disguised as the office visitor, be it a tradesman, cleaner or IT technician.

Another popular item for potential fraudsters is a similarly benign-looking device that sits between the computer and the keyboard and records all keyboard strokes. The police cited an example of such a key-stroke device that had been used in the robbery of one London bank by one of its cleaners. Losses would have run into millions of pounds if the institution receiving the stolen funds had not been alerted by a separate internal monitoring device.

These and other technology-led threats underlined the need for extra awareness in the workplace, in particular greater vetting of staff, improved IT security and more regular checking of data systems.

However, to gain access to the workplace, criminal gangs still required an “insider” and for that they continue to resort to conventional methods. Bribery is a common tool in attempting to persuade employees to act on their behalf, perhaps in planting devices such as the above. So too is coercion, with threats to the individual or their friends and families not uncommon.

Contacting employees can happen at a variety of locations: the smoking area outside an office has apparently become a favourite haunt of criminal gangsters in their attempts to befriend potential cohorts, while the pub, club and even train are locations also targeted.

Spotting a member of staff acting as an “insider” is difficult, but the police said there were certain characteristics that should make colleagues suspicious. For example, a sudden change of lifestyle, a noticeable change in personality, unexplained wealth, a reluctance to take annual leave, frequent cigarette or toilet breaks, frequently staying late and making unnecessary enquiries about the computer system, were noted.

There were several steps, however, that an organisation could take to minimise their exposure to insider fraud. For example, by promoting an “internal” culture, emphasising employee prospects, embracing inclusiveness and underlining a team ethic, staff will be discouraged from criminal temptation.

Additionally, deny the criminals the opportunity to commit their fraud. Better staff supervision, setting clear reporting lines, encouraging staff development and having tighter system controls, will all contribute to improvements in streamlining the organisation against attack.

For more information contact:
Oona Rosser
Tel: 01895 205000
email: oona.rosser@reliancesecurity.co.uk