The Internet Commerce Security Laboratory, a joint venture between the University of Ballarat, the Westpac Banking Corporation, IBM Australia and the Victorian Government, was opened yesterday.

Based at Ballarat Technology Park, the laboratory will focus on two approaches to defeating financial cyber crime by profiling the activities of criminal groups and developing technologies to ensure consumers and businesses

can use internet commerce with confidence.

It will target identity theft, viruses, worms, malware, financial fraud and spyware, and also develop solutions to identify organised cyber criminal groups around the world.

Westpac chief technology officer David Backley said the laboratory brought together industry, government and academia.

"We needed more than just the bank, more than just money, we needed a common purpose," he said.

Mr Backley said cyber fraud was a serious problem facing all aspects of the commercial world.

"People can now steal millions without involving cash or coins, or even be in the same country.

"We need the best brains in the country."

Information and Communication Technology Minister Theo Theophanous, who officially opened the laboratory, said it would tackle the cyber crime and security issues which businesses and individuals faced every day.

"Research from a Newspoll survey released this month show the top two issues of concern faced by Australians are the theft or misuse of personal identity, and credit and debit card fraud," he said.

"It is estimated that global cost of cyber crime is almost $3 trillion annually and this lab will be crucial in ensuring new threats of cyber crime can be restrained quickly and effectively."