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Barclays to issue online banking security device

UK retail bank Barclays is to issue 1.6 million personal password-generating devices to customers in Britain in a bid to prevent online fraud, the Scotsman newspaper has reported.

Online banking fraud is becoming an increasing problem to the financial services industry, leading many lenders to investigate and invest in new ways to protect access to customer accounts. Last year alone online banking fraud doubled to GBP23.2 million, according to figures from payment association APACS.

As it bids to reduce and prevent fraud, major UK bank Barclays has adopted a new system that provides account holders a unique login every time they access their account online.

To implement the state-of-the-art security system 1.6 million Barclays customers are being issued with personal password generating devices. The gadget, roughly the size of a hand held calculator, scans the account holder’s bank card and then generates a unique password which is then used to access online facilities.

The new devices will be issued next year, the Scotsman report states.