Barclays sends out security system
April 19, 2007
Online customers of Barclays bank will be sent their very own pin machines as part of a security drive by the financial institution.
Half a million account holders who use the bank’s online facilities to pay bills or make third party payments will be sent the calculator sized machine dubbed Pinsentry.
The new security device is an attempt to stem online fraud, the fastest growing branch of fraud, by combining the online experience with the chip and pin technology that has seen a significant reduction in point of sale fraud.
According to the Association of Payment Clearing Services there had been a 44 per cent rise in internet fraud in 2006. In 2005 online crimes like phishing, where criminals trawl the web and send out fake emails requesting bandk details, cost £23.2 million, but last year £33.5 million was fraudulently taken.
To use the Pinsentry customers conducting an online transaction insert their card into the device. They will then be asked to type in their pin and, provided they enter it correctly, the machine will display one of millions of randomly generated eight digit numbers the card came primed with.
The security code can then be authenticated by the bank’s mainframe and the transaction authorised.
Written by Peter Kenny · Filed Under News Banking
Good solution but to do very hardship in carrying. Need to suggest to have self Approval over mobile handset as second factor authentication followed by pin.
Well, I received my reader just a few days ago. Now I can nologer access my account on the move. I would have to take this device with me everywhere that I go inorder to access my account on the move.
I can see Barclays losing thousands of customers following the introduction of pinsentry, I will be moving to another bank that will allow me access to my online account on the move.