Britain's economy could be at risk because companies are not doing enough to tackle issues like cyber crime and human error which lead to data leaks, new research warns.
The study, Security Economics and the Internal Market, which was undertaken by Economic and Social Research Council, reveals that electronic fraud now costs billions of euros and growing public concern over the issue is indirectly adding to this.
Discussing the report, Bruce Hallas, a specialist in information security, explained that tackling the issue is not just about spending money on equipment.
He said: "Security is about managing the risk from people, both known and unknown, interacting with your information and information systems. It is more about people management than technology."
The document recommends the European Union introduces a breach notification law which would oblige firms to inform customers when their details have been compromised.
Meanwhile, a study by BDO Stoy Hayward reveals that fraud is on the rise and put this down to the impact of the credit crunch.
