Changes to payment cards ‘do not go far enough’ – Britons are warned about a common fraud | Personal finance | Finance
The Security Secretary has announced that Action Fraud, the UK’s official reporting center for fraud and cybercrime, will be “completely redesigned” to tackle the vast problem of online scams. Strong Customer Authentication (SCA) is one of the new rules that have been enforced to fight crime.
These new rules are being enforced in a bid to prevent fraudsters from capitalizing on Brits.
The pandemic and lockdowns have triggered an increase in financial crime and scams, so changes under the Financial Conduct Authority’s (FCA) fraud prevention rules have come into play.
The idea behind this decision is to create a new layer of security to protect buyers and their money.
The changes will impact anyone banking or shopping online, as they will be subject to additional security checks in an effort to make transactions more secure.
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Customers will now receive a code from their bank – usually on their mobile phone – when they make an online payment and they will need to enter it at checkout for the payment to be approved.
Express.co.uk spoke exclusively to Brian Higgins, Security Specialist at Comparitech about the new changes and how Britons can protect themselves.
He said: “These changes will certainly provide an additional layer of protection against online retail fraud, but as with most large-scale changes, some people will suffer more than others until the new processes do. part of our online behavior.
“An extra layer of verification has always been recommended, these regulations just make it ‘must have’ instead of ‘nice to have’.
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“Unfortunately digital exclusion is a harsh reality in the UK and there are communities such as the elderly, the socially and economically disadvantaged and many others who have little or no access to the systems affected in the first place. .”
Users can be prompted to approve payments by logging into their bank’s mobile app.
Without identity verification to prove the transaction is genuine, the card payment may be declined.
He continued: “The good news is payment providers have had plenty of time to prepare and if anyone is concerned they should contact their card provider for advice.
“It will only take a few declined transactions for most people to take action.
“It remains to be seen how much inconvenience or financial impact this will have, but for once we can take comfort in the fact that this is a change for good and not just for fun.”
As the world of payments evolves to rely more on mobile, individuals can be more vigilant in their security practices and more aware.
He gave the following tips that can help reduce the possibility of being exposed to phishing attacks and malware.
- Make sure your phone is up to date
- Update all your apps to the latest version
- Use official app stores only
- Install Mobile Threat Defense to keep your communications and apps secure
Despite the change aimed at limiting fraud, an expert warned that it could open up more opportunities for these scammers.
Fergal Parkinson, director of TMT Analysissaid: “While any consumer protection measure is welcome, it is only the tip of the iceberg.
“The new rules don’t go far enough and still leave the door wide open for possible sim swapping – an increasingly common technique adopted by fraudsters where they intercept authentication text messages.
“Retailers shouldn’t rely solely on basic two-factor authentication – sending passwords to a device in order to log in – to protect customer information.
“Making sure devices are tied to a specific person is a much more secure approach.”