Feeds

Barclays deploys PINsentry to fight fraud

Chip-and-PIN marches into the home

The Essential Guide to IT Transformation

Barclays has announced plans to send out handheld chip and PIN card readers to their online banking customers in a bid to combat online fraud.

The bank is to provide chip-and-PIN 'PINsentry' card readers to half a million customers in the UK, starting later this year.

Barclays online customers will be required to use the handheld device to generate a one-time passcode that will have to be entered at log-in and to run some online banking functions, such as setting up payments to new third party accounts. The device will only generate a passcode once the user's bank card has been swiped through it, and the PIN code entered. The approach will replace the need for passcodes and memorable words.

Barclays' approach is a refinement of two-factor authentication approaches already in use by some UK banks. Two years ago, for example, Lloyds TSB began trialling a token device which provided online banking customers with a one-time six digit passcode.

Security watchers praised Barclays' move as a step in the right direction, but warned that it would be a mistake to regard the extra security as foolprooof.

"Consumer confidence in online transactions and online banking has been waning and better safeguards, such as biometrics or smartcards needs to be considered by other banks," said Raimund Genes, CTO of internet security at anti-virus firm Trend Micro.

He added that banks in the Middle East are way ahead of their UK counterparts in implementing controls for online banking that go beyond simple password logins.

UK-based net security firm Sophos predicted that Barclays Chip-and-PIN devices would reduce, but not eliminate, the risk of fraud. PINsentry should reduce the risk posed by phishing emails and key-logging Trojans, but "man-in-the-middle" attacks still pose a credible risk to online bank customers, it warned.

Sophos senior technology consultant Graham Cluley said: "Including two-factor authentication in the online banking process is definitely better security - keyboard logging spyware and phishing emails won't be effective if user passcodes keep changing.

"However, these chip-and-pin devices do not prevent all identity theft - spyware can still steal screenshots of what bank customers are doing online and can capture account information to use for fraudulent purposes. More sophisticated hackers can even develop 'man-in-the-middle' attacks that sit in between users and their banks, automatically capturing information in real-time and sending unauthorised instructions to the bank [while] posing as the customer." ®

Build a business case: developing custom apps

More from The Register

next story
14 antivirus apps found to have security problems
Vendors just don't care, says researcher, after finding basic boo-boos in security software
'Things' on the Internet-of-things have 25 vulnerabilities apiece
Leaking sprinklers, overheated thermostats and picked locks all online
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Only '3% of web servers in top corps' fully fixed after Heartbleed snafu
Just slapping a patched OpenSSL on a machine ain't going to cut it, we're told
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
Israel's Iron Dome missile tech stolen by Chinese hackers
Corporate raiders Comment Crew fingered for attacks
Tor attack nodes RIPPED MASKS off users for 6 MONTHS
Traffic confirmation attack bared users' privates - but to whom?
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.