New online checkout payment checks have been rolled out by the building society to better help those who shop online. National data suggests that Strong Customer Authentication (SCA) blocks 2,000 transactions per month that are at risk of being fraudulent. The building society said it is “important” that people keep contact details held by their bank or building society up to date, including their mobile phone number.
This is even more important if people don’t use the mobile banking app, or there might be issues when they go to the cash register while shopping online.
Nationwide offers several options when it comes to SCA verification, including:
Authentication using the mobile banking application
One-time secret code by SMS
One-time access code using card reader
One-time passcode via landline
Unique access code by e-mail.
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A study by Nationwide found that 68% of Britons are happier to wait a little longer for shopping transactions to go through if it’s safer to do so.
Strong Customer Authentication (SCA) was initially introduced by debit and credit card providers in September 2019.
However, it was only rolled out to a small proportion of payments and was widely introduced to all online purchases on March 14.
Thanks to the verification system, buyers will have to confirm their identity when making an online purchase by responding to a push notification on their mobile device.
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Overall, Nationwide research shows that 28% of all purchases are now made online, which is a 52% increase from five years ago.
Matt Cox, Chief Product Owner for Digital Payments at Nationwide Building Society, explained how recently introduced checks better protect customers from scams.
Mr Cox said: “Many people prefer the convenience of shopping online and while merchants strive to make the checkout experience as quick and easy as possible, we generally accept that a little delay is worth it. punishment with regard to our security and our personal data.
“The introduction of new strong customer authentication measures only adds a few extra seconds to the payment process for high-risk transactions.
“But they are vital for retailers, banks and building societies to verify if the cardholder is making the purchase.”
In addition, Mr. Cox pointed to the speed with which this latest backup has managed to mitigate the damage caused by fraudsters. He explained: “It has only been two months since the new regulations were fully rolled out, but we are already seeing around 2,000 fewer online fraud cases per month and this is likely happening across the industry as a whole.
“While this is good news, history has shown us that when we interrupt fraudsters, they often look for other, easier ways to cheat people with their hard-earned money. This means we must always remain vigilant because we protect our members’ money.
The majority of online scams occur using compromised data, which is received through data leaks, according to the construction company. Many consumers mistakenly assume that they are at risk of scammers stealing their physical bank card and using it to make purchases online. Despite this concern, 59% of respondents admitted to fearing their card would be stolen and used online. However, it looks like similar payment check initiatives used by Nationwide could help ease concerns in the future.