The Financial Services Authority has called on banks and other financial institutions to do more to tackle the threat of identity fraud.

The organisation's research found that nearly half of the 39 companies polled failed to give staff training in data security, with small and medium-sized firms the worst culprits.

The warning follows a series of high profile cases where sensitive customer data has been lost by institutions, including HMRC, Nationwide, Norwich Union and HSBC.

"It is worrying that despite increased public awareness of the impact that identity theft can have on customers, many firms are still not taking the risk seriously," said Philip Robinson, the FSA's director of financial crime and intelligence.