Lloyds testing a new device to counter online frauds |
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Sat, 15 Oct 2005 06:05
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LONDON: Lloyds TSB is testing a new hardware piece to protect its customers from fraud while using online banking services. The bank has distributed "access code devices" to some 30,000 of its customers for use when they log on to their accounts.
The device generates a new six-digit number, each time a customer accesses his account and he is required to key in this number instead of the present system of memorising the information.
Lloyds TSB expects the device, the size of a key ring, to be an effective counter to internet fraudsters. A bank spokesperson, describing the use of the device, said even if a fraudster has the user's password and user ID, he will not be able to access the account without keying in the six digit number generated by the device. The password, user ID and other memorable data should be used in tandem with the device to access the account, he added.
Each device carries a unique identity and the numbers generated by it are recognised by the bank's system when used in conjunction with the customer's personal details.
Lloyds TSB has used the technology internally and has found it to be successful.
According to available data, U.K. banks lost 12 million pounds in 2004 in internet banking frauds, but this figure is tiny when compared to 500 million pounds lost in credit card frauds.
Lloyds TSB is working with the Association of Payment and Clearing Systems (APACS) and other members of a working group to develop a standard authentication device for online banking and shopping.
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