BARCLAYS’ customers will be able to do away with their Pin and security codes to access online banking services after the launch of its “biometrics” scanner next year.
The Barclays biometric reader, which will be made available first to corporate clients, scans customers’ fingers to verify their identity. It is hoped the device will make online banking fraud more difficult. It has been tested at cash machines in Japan, north America and Poland, giving users access to money without a Pin.
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How does the reader work?
Customers attach the device to their computers and then place their finger on a scanner. This will scan the user’s blood vessels to verify who they are. The scanned finger must be attached to a live human body in order for the veins in the finger to be authenticated. Barclays says it is more difficult to counterfeit an individual’s blood vessels than their fingerprints.
When will it be available to retail customers?
There are no firm plans to roll out the device for retail customers. Barclays said it is testing the system first and will make a decision after trials with corporate clients.
Ashok Vaswani, chief executive of Barclays Personal and Corporate Banking, said there was demand from customers for better, more convenient security measures. He said: “This solution is at the leading edge of innovation and is in direct response to client concerns about the threat of online fraud.”
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How secure is the system?
Barclays says it has carried out extensive security testing to ensure the device is safe and cannot be used by fraudsters. However, Ross Anderson, a bank security specialist at Cambridge University, is sceptical. He said: “Banks are introducing new devices to improve their security, but we have shown in the past that it is possible for fraudsters to overcome them.”
Anderson says he does not use online banking services because of security concerns.
What do banks use now for online security?
Some banks require customers to use an electronic device to gain access to online banking services. Barclays customers already use Pin Sentry, where the customer inserts their debit card into the device and then enters their Pin to obtain an access code.
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Others banks, such as HSBC and First Direct, require customers to use a small calculator-like gadget and put in a code, but do not require a card to be inserted.
Halifax and Lloyds, part of Lloyds Banking Group, do not require an electronic device for online access. Instead, customers enter a password and “memorable details”. The bank denied that not using an electronic device made its banking services less secure.
Is online banking fraud increasing?
Yes. Fraud losses from online banking rose from £39.6m in 2012 to £40.9m last year, according to the UK Cards Association. The figure stood at £35.4m in 2011.
Losses had been falling from a peak of £59.7m in 2009, but the trend has reversed due to a rise in “vishing” attacks — when a fraudster gains a victim’s confidence in a phone call and obtains online banking codes.
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The UK Cards Association said banks or the police will never phone or email customers asking for a Pin or full online codes.
Top tip
As well as keeping all your security codes safe, make sure you have antivirus software installed. These programs can be downloaded free online, but make sure you use a recognised provider such as Microsoft or AVG. Once you have this, keep all your computer software up to date.