Barclays steps up fraud war

Barclays has unveiled plans for a range of anti-fraud measures over the next 12 months to protect online banking customers.

The bank told Computing it will introduce a variety of methods to authenticate internet users, including card readers and mobile phone verification.

The aim is to offer different devices depending on customer needs, says Barclays director of electronic banking Barnaby Davis.

‘Everyone is trying to find a one-solution-fits-all method, but I don’t think that is how the internet will move,’ he said.

‘We are looking at a split service. There might be a one-time passcode for smaller payments, but if you move large amounts of money around you may want to use a card-based solution.’

The plans build on last week’s announcement that Barclays has become the first UK bank to offer free anti-virus software, supplied by F-Secure, to all 1.6 million active online customers, as well as a text messaging service to alert customers to suspicious transactions.

The text service, already used by Barclays’ ABSA bank in South Africa, will notify customers when a third-party payment is set up using their online account.

The bank plans to extend this service and use it as an anti-phishing technology, to issue an extra one-time password and notify customers if someone tries to log in to their internet account.

‘They will know as soon as someone tries to make a payment and can stop them. We also see the SMS notification service developing to include an element of authentication,’ said Davis.

Barclays also expects to start issuing a payment card-reading device to high-use internet customers next year, to authenticate transactions made via the internet or telephone.

The interoperable card reader developed by banking industry body Apacs aims to cut card-not-present fraud, which grew by 21 per cent last year, costing UK banks £183.2m.

‘Early alert systems of any type that notify banking customers are a good idea,’ said Sandra Quinn, director of corporate communications for Apacs.

‘Over the next 18 months to two years we will see banks offering a variety of things to further cut fraud.’

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