DTI launches broadside on online fraud

The project includes a pilot scheme with a group of Midlands retailers to roll out anti-fraud software, and a research project driven by the London School of Economics into the risks of using PKI (public key infrastructure).

The move is the second part of the Department of Trade and Industry's Management of Information programme launched on 18 March last year by small business minister Michael Wills.

The DTI has been under increasing pressure to take action to stem the flow of security scares and commercial fraud in the high-tech sector.

One of the key projects involving the Financial Services Authority, London Business School and Dresdner Kleinwort Benson will attempt to map potentially fraudulent transactions on London's equity markets.

Launching the scheme, e-minister Patricia Hewitt said: "Businesses are continually at risk from fraud and crime. Electronic systems can be vulnerable to hackers and other criminals. These projects will help to safeguard business and IT crime."

Hewitt also unveiled a website targeted at distribution, financial and retail firms designed to offer advice on developing security systems and identifying fraud.

The initiatives will be funded with £15m raised last year for the Management of Information programme - £4.5m coming directly from the government and the rest from research councils and private companies.

Applications for funding in the third phase and final phase of the programme are required by the end of the year.