Lords call for web fraud protection

The House of Lords has called for improvements to the way our personal data is protected on the web.

After the government was left with egg on its face from the loss of 25 million records by HM Revenue and Customs in November 2007, the Lords Science and Technology Committee said the matter had to be taken much more seriously.

The Select Committee accused the government of "a level of indifference dispelled only as a result of recent incidents involving serious losses of personal data".

The Committee has now released a new report on personal security on the web as a follow-up to one published last August and is pushing for legislation to ensure that banks are liable for refunding victims of online fraud.

Changes to the banking code made earlier this year absolve banks of responsibility for online fraud if the victim is not using up-to-date security software but the Select Committee wants to see banks being "more proactive about improving the security of their online banking operations".

Lord Sutherland of Houndwood, Chairman of the Lords Science and Technology Committee, said that members of the public should be able to approach the police if they become the victim of online fraud, rather than having to report it to the bank or card issuer as is currently the case.

"If you were robbed in the street you would expect the police to recognise it as a crime and try to catch the person responsible. If you are a victim of online fraud, you should be entitled to the same protection," said Lord Sutherland.

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