Feeds

Barclays deploys PINsentry to fight fraud

Chip-and-PIN marches into the home

Build a business case: developing custom apps

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." ®

The essential guide to IT transformation

More from The Register

next story
Rupert Murdoch says Google is worse than the NSA
Mr Burns vs. The Chocolate Factory, round three!
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Germany 'accidentally' snooped on John Kerry and Hillary Clinton
Dragnet surveillance picks up EVERYTHING, USA, m'kay?
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
Who needs hackers? 'Password1' opens a third of all biz doors
GPU-powered pen test yields more bad news about defences and passwords
Think crypto hides you from spooks on Facebook? THINK AGAIN
Traffic fingerprints reveal all, say boffins
Microsoft cries UNINSTALL in the wake of Blue Screens of Death™
Cache crash causes contained choloric calamity
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.