UK: Barclays Bank has announced that later this year, Barclays customers who
use their online bank account to set up payments to new third party
accounts will begin using PINsentry devices. The devices will be used
together with the customer's normal debit card and PIN, to authenticate
their identity at log in and for making certain payments. This will replace
the need for passcodes and memorable words.
This is the latest in a series of Barclays initiatives to increase the
security protection for online banking customers – last year it offered
free anti-virus software as well as a SMS text message confirmation service
to online customers. As a result Barclays online banking won Anti-Fraud
Strategy of the Year at the prestigious 2007 Financial Sector Technology
Over half a million customers will be automatically sent free PINsentry
card readers and instructions by the end of the year, with this number
increasing further as more customers are added to the service. The
remaining customers will not need PINsentry at this stage – it will only be
needed by those who use online banking to set up payments out of their
account to a new third party for the first time. Customers who simply wish
to use online banking to view their accounts and pay bills to established
payees will be able to continue to use online banking as normal without the
need for PINsentry.
Barnaby Davis, Director for Electronic Banking, said: "Barclays is
constantly working to help protect customers and their money and that is
why we have invested in this system. PINsentry is the next generation of
fraud prevention technology and Barclays is proud to be the first
organisation in the UK to roll it out to its customers."
He concluded, "The popularity of Barclays online banking service comes down
to convenience and security and the introduction of PINsentry will enhance
both of these features."
Barclays is sending out handheld chip and PIN card readers to online
banking customers in a pioneering anti-fraud initiative.