Banks to improve online banking security

20 April 2005
Several high street banks are preparing to implement measures designed to cut down on card-not-present and identity fraud when shopping and banking online.

The banks are examining two electronic devices and are expected to make a decision next month about which form of encryption to use as standard.

The consultation period follows Barclaycard's announcement last month that it had completed trials on a calculator-sized device that would require online buyers to enter a four-digit pin number in order to complete their purchase.

The other device under consideration is about the size of a keyring fob and would generate a six or eight-digit number that the bank website or online retailer would require in order to allow access to the site.

"We are in the final stages of consulting with our banks to determine the flavour of these specifications we will see as a UK standard," Tony Salmond, consultant to the e-commerce group with the Association of Payment Clearing Services, told the Evening Standard.

"By the start of May we should have agreement on the authentication standard."

The banks' decision-making process follows calls from the British Retail Consortium last week for banks to take more responsibility for card-not-present fraud related to online retail.

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