Companies operating online have been warned to look out for e-attacks, described as the 'next big IT issue following the millennium bug'. E-attacks on companies - from computer hackers and viruses - have multiplied by three times this year compared with 1998 - and the problem is with expected to increase sharply in 2000. Speaking at the Survive BS7799 special interest group meeting of senior financial figures at Prudential's London head office, DK Matai, managing director of internet software provider mi2g, warned that problems surrounding the IT issue are on the rise. 'E-risk and attacks are rising at the same rate as Internet use which in itself is expected to rapidly increase. Last year there were a reported 1,050 online security breaches but that figure is expected to top 3,000 this year at a total cost to business of over £20bn, not including share price decline,' said Matai. He pointed to recent high-profile Internet hijacks by hackers including the incidents at the websites of the White House, Hotmail, Argos and Nasdaq, which could have all been carried out using simple and inexpensive computer capabilities. He added that if it could happen to them, it could occur to any business. A recent report found 50% of businesses did not have any knowledge of when their Internet security had been breached. There are an estimated 40,000 computer viruses with 500 in use at any one time, while 'Trojan Horses' - routines that surrender client control to third parties - were also described as a threat. Companies were told they could protect themselves by ensuring e-risk management strategies were in place, including adequate legal support and insurance cover. Matai also said he believed e-users in the future will carry some form of physical identification before being able to use electronic networks to combat e-crime, such as fingerprint records, personal computer identity cards or retinal scan verifications.

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