Banks using baffling security measures to protect consumers
April 2, 2008
Many consumers are nervous about using their credit and debit cards online in order to make purchases in case they become the victim of fraud, and banks have been taking steps to try and deal with this issue. However, there are concerns that some of the measures that have been put in place by the various banks to protect consumer that are making card transactions online are too confusing and complicated. However, on the upside the Association of Payment Clearing Services has stated that in 2007 the level of banking fraud fell by one third, which means that the systems being used could actually be working effectively.
Despite the apparent benefits of these security measures many banking customers have stated that they find them too time consuming and frustrating to use. The systems were put in to place to combat rising levels of Card Not Present fraud, also known as CNP fraud, which is where the transaction is made without the retailer even being able to see the card, and where no signature or PIN number is needed. Bank officials have stated that the systems have proven effective in helping to reduce CNP fraud.
A range of different systems have been used by the various banks in order to increase security for their customers, such as key rings that generate random number used by Lloyds TSB, and small keypads the size of calculators used by Barclays. Many are confused because there are so many different systems in place with different banks, whereas it had been hoped that one central system would be used by all banks. There are a number of banks that have decided against using this sort of security system such as Abbey and HSBC.
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