The security minister has announced that Action Fraud, the UK’s official fraud and cybercrime reporting centre, will be “totally redesigned” to tackle the huge problem of online scams. One of the new rules that has been applied to combat crime is strong customer authentication (SCA).
These new rules are being applied in a bid to prevent scammers from taking advantage of the British.
The pandemic and lockdowns have led to an increase in financial crime and scams, which is why changes to the Financial Conduct Authority (FCA) fraud prevention rules have come into play.
The idea behind the move is to create a new layer of security to protect shoppers and their money.
The changes will affect everyone who banks or makes purchases online, as they will be subject to additional security checks in an attempt to make transactions more secure.
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Customers will now receive a code from their bank, usually to their mobile phone, when they make a payment online and must enter it at the checkout for the payment to be approved.
Express.co.uk spoke exclusively to Brian Higgins, Security Specialist at comparatech about the new changes and how Brits can protect themselves.
He said: “These changes will certainly offer an extra 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 become part of our business. online behavior.
“An extra layer of verification has always been recommended, these regulations just make it a ‘must have’ instead of a ‘nice to have’.
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“Unfortunately, digital exclusion is a stark reality in the UK and there are communities such as the elderly, the socially and economically disadvantaged and many others who have limited or no access to the affected systems in the first place.”
People can be asked to approve payments by logging into their bank’s mobile app.
Without the identification check to prove that the transaction is genuine, the card payment may be refused.
He continued: “The good news is that 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 act.
“How much inconvenience or financial impact this will have remains to be seen, but for once, we can take comfort in the fact that this is a change for good and not just for the sake of it.”
As the world of payments evolves to become more mobile-dependent, people can be more vigilant about their security practices and increase their awareness.
He gave the following tips that can help reduce the chance of being exposed to phishing and malware attacks.
- Make sure your phone is up to date
- Update all your apps to the latest version
- Use only official app stores
- Install mobile threat defense to make sure your communication and apps are safe
Despite the change aimed at limiting fraud, one expert warned that it could open up more opportunities for these scammers.
Fergal Parkinson, director of TMT AnalysisHe said: “While any consumer protection measures should be welcomed, this is just the tip of the iceberg.
“The new rules don’t go far enough and still leave the door open for potential sim swapping, an increasingly common technique adopted by scammers where they intercept authentication text messages.
“Retailers shouldn’t just rely on basic two-factor authentication (sending passwords to a device to log in) to keep customer details secure.
“Making sure devices are linked to a specific person is a much more secure approach.”