[access-uk] Re: chip & pin banking
- From: "Dj Paddy" <mygroups@xxxxxxxxxxxxx>
- To: <access-uk@xxxxxxxxxxxxx>
- Date: Wed, 16 May 2007 13:19:44 +0100
I've just rang the Halifax and they no nothing about this. So I'm guessing
they're not planning on implamenting this. The CS Rep said they normally
are given a heads-up of things like this and checked with her collegues who
also knew nothing.
Dj Paddy
Ôà
----- Original Message -----
From: "Ankers, Dave (UK)" <Dave.Ankers@xxxxxxxxxxxxxx>
To: <access-uk@xxxxxxxxxxxxx>
Sent: Wednesday, May 16, 2007 9:42 AM
Subject: [access-uk] Re: chip & pin banking
So are the banks going to provide talking security number key fobs for
VIP's?
=20
Dave
From The Guardian 12 May 2007
Banks impose home chip and pin to fight internet accounts fraud Tony
Levene
All the big banks - except HSBC, which also controls First Direct are to
demand that online customers use "chip and pin at home"
devices to identify themselves before moving money out of their
accounts, in the biggest change to personal banking since chip and pin
replaced signatures at the checkout.
Millions of hand-held card reading devices will be sent, free of charge,
to bank customers over the next six months in the latest attempt to
fight online fraud. Regular internet users will be the first to receive
the devices, in which they will have to place their debit card before
making any online banking transactions.
Only balance inquiries, and payments to "known and trusted" big firms
such as telephone and power companies will be possible without using the
devices.
Account holders at Barclays, NatWest and Nationwide will be given a
calculator-style gadget which, once they insert their debit card, will
produce a randomly generated number which they will have to key in as
well as their usual passwords and identification numbers.
Lloyds TSB customers will have a keyring-style device with an inbuilt
chip, which will also produce a random number. A big advertising
campaign is due to run this summer.
Banks hope the devices will beat the fraudsters because they will be
independent of a user's computer, thereby preventing scams such as "key
logging" in which trojan software records every key stroke on a
computer, including access codes.
The introduction of chip and pin at home will coincide with an
industry-wide "faster payments" scheme, which from November 4 will
finally end current clearing times of three to five days, even where
money is transferred between accounts online.
The banks are concerned that instant money transfers - demanded in the
government-sponsored Cruickshank report in 2000 - would expose them to
greater fraud, and are introducing the hand-held chip and pin readers to
combat the risk.
Barclays and NatWest are leading the move to "multi-layer
authentication" while other banks are still choosing which technology
and card readers to adopt.
"There is no hiding that fraud is on the increase and that fraudsters
are becoming increasingly cunning. Our access code device will deal a
major blow to these internet thieves," said a spokesman for Lloyds TSB.
Welcome to chip and pin for the home
It will be the biggest change in how we bank since chip and pin made
signing for a credit or debit payment seem a thing of the past, writes
Tony Levene. Most of Britain's top banks - except HSBC and First Direct
- are due to send out millions of "chip and pin at home" gadgets to
customers who bank online, as an extra defence in the anti-fraud battle.
For customers, the machines - most look like the calculator-style gizmo
pictured on this page - will be as essential a part of internet banking
as a password and a mouse. Anybody wanting to move money around their
bank accounts or send cash to accounts owned by family and friends, or
make payments to third parties, will have to use a card reader.
The devices generate a random "access" or "challenge" code, which will
be recognised by the customer's bank as belonging to you once it is
keyed into your home computer. Each transaction will need a new code -
so it is claimed that fraudsters, who concentrate on penetrating
computers, will be unable to discover what the next number will be.
The big gadget roll-out starts in early summer, but some banks have more
advanced plans than others.
Barclays and NatWest intend to send out calculator-style card readers
which use the chip on a customer's debit card to generate a random
eight-figure number. LloydsTSB will send out "dongles" - a keyring-style
gadget which does not need a card as it has an inbuilt chip, but which
also generates a random number; this time six figures.
But no bank is obliged to bring in chip and pin at home. HSBC believes
its fraud losses are so low that the expense of the new system would
outweigh the potential fraud saving.
Other big banks, however, believe the cost of sending out devices at no
cost to customers is well worth it.
Banks fear internet banking fraud losses will continue to soar without
the new security devices. In 2004, they lost 12m; pounds in 2005,
fraudsters grabbed 23.2m pounds while last year the figure jumped again
to 33.5m pounds.
Under the banking code, the banks have to pick up the bill for online
fraud losses, unless they can show account holders were complicit in the
theft.
The banks intend to mount a chip and pin at home publicity campaign in
the autumn. Some may combine this - and counter customer moans about yet
more layers of security - by telling account holders that, from November
4, they will introduce faster payments.
That means that online banking transactions will move through the system
at broadband speeds, rather than the three to five days it currently
takes to clear a payment. This extra speed is part of an industry-wide
initiative intended to drag the banks out of the Victorian era.
"Faster payments increase fraud risk so banks need extra security.
These handheld devices are one answer to this," says Georges Lieberman
of technology firm Xiring, which supplied the reader shown here.
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