News | Published September 03 2019

Retailers across the country rolling out new anti-fraud measures

The measures, known as Strong Customer Authentication, ask shoppers to input a one-time passcode to complete an online transaction and have also been introduced by the likes of Apple.

John Lewis, the UK’s largest employee-owned business, has introduced changes to the way customers make payments, both in stores and online.

The technology means that whenever an online shopper spends over £28 during one transaction, payment providers require them to give an extra form of verification.

The Financial Conduct Authority initially delayed the role out of the technology and will not enforce laws compelling firms to introduce it until March 2021.

Banks and retailers had been due to introduce SCA as early as next week, but many insisted they were not prepared.

The FCA has, however, told providers it expects them to introduce the measures gradually over the next 18 months.

Andrew Cregan, payments policy advisor at the British Retail Consortium, said: "The technical solutions weren't going to be ready on time, nor the guidance to go with them.

“You could have seen online transactions abandoned due to people simply not receiving the passcode if their bank didn't hold the correct phone number or if there was no mobile signal.”

Shoppers will begin noticing the changes depending on who they bank with and might be prompted to enter a PIN when making purchases through contactless.

An estimated £671 million was lost to fraud on UK payment cards in 2018, a 19 per cent increase on the previous year.

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Authored by

Joshua Sandiford
Junior Political Editor
September 03 2019

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