FSA trains staff to spy on online fraudsters

The Financial Services Authority (FSA) is to train its enforcement officials to surf the Internet to crackdown on fraud and unlicensed financial services on the Web.

A spokeswoman for the FSA said it is considering a number of ways to police the Net, including sending its regulators over to the US to learn from the Securities and Exchange Commission (SEC).

However, the FSA believes it would be too expensive to hire full time staff to patrol the Internet, given the size and international nature of the Web. The FSA stressed that international co-operation will be the key to the crackdown, enabling the FSA to target resources for the best results.

The FSA is the government body charged with regulating the provision of financial services in the UK.

The spokeswoman said that while the Internet raised enforcement challenges for the FSA, they can be met by the right mix of international links, consumer education and surveillance by FSA officials.