15 May 2007
Over six million online current account users are to be sent home chip and PIN devices to help combat internet fraud.
Where Barclays began several weeks ago, others are now following with all of the major high street banks - except HSBC - committing to sending their customers small, handheld chip and PIN readers.
Last year, internet shopping fraud amounted to 155 million, according to the UK payments association Apacs, with online banking fraud rising by 44% last year to 33.5 million. It is these sorts of figures which NatWest, Barclays, Lloyds TSB and Nationwide are hoping to prevent.
When making a balance transfer, consumers will be required to insert their card into the reader and verify the transaction with their PIN number. Then, a randomly-generated number will appear on the reader's display screen, which the user will then type into their computer to authorise the transaction.
Mark Bowerman from Apacs told the Sun: "Initially they will be used for online banking. In the fullness of time there is no reason why they cant be used for internet shopping.
"That is the next step. First we need to get the devices into use before introducing them into the shopping environment," he concluded.
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