UK banks are set to roll out additional security measures for online shoppers to prevent card payment fraud.
Some banks, including HSBC and First Direct, have already written to customers to advise they will have to enter a six-digit one-time passcode sent via text message to complete online shopping transactions, as well as entering the three-digit CVV number on the reverse of their card.
The industry-wide change will eventually replace the “Verified by Visa” and “Securecode” password-based systems used by Visa and Mastercard.
The security update comes ahead of an EU directive on payments technology in September 2019.
Other banks could verify online purchases via smartphone thumbprint scans or codes generated by card-reading devices used for online banking.
In the UK last year, overall card fraud fell by 8 per cent according to data from Fico, the data analytics company, but “card not present” fraud still totalled about £400m.