Barclays introduces 'PINsentry'

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

Awards.

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.