Online customers will see changes in the way they shop from today as part of moves to combat fraud.
New rules will mean customers being asked to input a code or other form of identification after making a purchase. This could include a fingerprint or facial ID, a passcode or password.
In practice, this could mean customers are asked to verify a purchase via text message, receiving a passcode which they are then prompted to enter on screen.
Other confirmations could include answering an automated phone call to a landline or mobile, or through an app on a smartphone.
Some types of transactions are exempt from strong customer authentication, meaning customers may not always be asked to complete extra security steps. These may be purchases deemed ‘low-risk’ of fraudulent activity, such as when buying low-cost items, or repeated purchases such as subscriptions.
Retailers are ready for the change, having been preparing their systems for many months to process these extra security checks. Successful roll out of the new regulations will also require banks to be prepared for the changes.
The new rules aim to tackle rocketing fraud rates as consumers increasingly rely on the internet to complete everyday tasks.
According to a new study by Which? the number of cases of online scams reported to Action Fraud in the year to April…
