The security minister has announced that Action Fraud, the UK’s official reporting centre for fraud and cybercrime, will be “totally redesigned” to cope with the vast issue of online scams. One of the new rules that have been enforced to combat the crime is Strong Customer Authentication (SCA).
These new rules are being enforced in a bid to stop fraudsters capitalising on Britons.
The pandemic and lockdowns have sparked a rise in financial crime and scams so changes under 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 impact everyone who banks or makes purchases online as they will be subject to extra security checks in a bid to make transactions safer.
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Customers will now be sent a code by their bank — usually to their mobile phone — when they make a payment online and they will need to enter this at the checkout for the payment to be approved.
Express.co.uk spoke exclusively to Brian Higgins, security specialist at Comparitech on the new changes and how Britons can protect themselves.
He said: “These changes will certainly offer an extra layer of protection from 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 online behaviour.
“An extra layer of verification has always been recommended, these regulations simply make it ‘must have’ instead of ‘nice to have’.
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“Unfortunately, digital exclusion is a stark reality in the UK and there are communities like the elderly, the socially and economically deprived and many others who have no or limited access to affected systems in the first place.”
People may be asked to approve payments by logging into their bank’s mobile app.
Without the identification check to prove the transaction is genuine, the card payment may be declined.
He continued: “The good news is that payment providers have had plenty of time to prepare and if anyone is worried, they should contact their card provider for advice.
“It will only take a few declined transactions to make most people take action.
“How much inconvenience or financial impact this will have remains to be seen but for once, we can be consoled by the fact that this is a change for good and not just for the sake of it.”
As the payments world evolves to rely more on mobile, individuals can be more vigilant in their security practices and raise their awareness.
He gave the following tips which can help reduce the possibility of being exposed to phishing attacks and malware.
- Ensure your phone is right up to date
- Update all your apps to the latest version
- Only use the official app stores
- Install mobile threat defence to ensure your communication and apps are safe
Despite the change aiming to limit fraud, an expert has warned it could open up more opportunities for these scammers.
Fergal Parkinson, Director of TMT Analysis, said: “Whilst any consumer protection measures are to be welcomed, this is merely the tip of the iceberg.
“The new rules don’t go far enough and still leave the door wide open for potential simswapping – an increasingly common technique adopted by fraudsters where they intercept authentication text messages.
“Retailers should not be relying just on basic two-factor authentication – sending passwords to a device in order to log in – to keep customer details secure.
“Ensuring that devices are linked to a specific person is a much more secure approach.”
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