In an attempt to add an extra layer of security to online banking transactions, Barclays Bank has sent out ‘PINsentry’ machines to its online account holders.
Over half a million Barclays customers will be sent the free PINsentry card readers by the end of the year, which will be used to prevent online banking fraud.
The PINsentry reader is meant to be used once an online account holder has logged in to the banking site.
After logging in, customers slot their bank debit card into the card reader, which generates a unique code which they must input before making a transaction. A new code is generated each time a customer logs on.
The device will initially be used for customers who use their online bank account to set up payments to new third party accounts, which is the easiest way for fraudsters to clear out someone’s bank account.
Concern about banking fraud is a big issue, with recent figures from APACS showing that online fraud rose by 44% last year, with £33.5m stolen from online accounts in the UK.