Millions to receive their own Chip and PIN machines to use at home

Millions to receive their own Chip and PIN machines

A number of banks have taken the decision to send out chip and PIN hand held machines to customers (free of charge) over the coming months for them to use in the privacy of their own homes whilst conducting transactions for online banking. One notable exception to this is HSBC.

This move is a direct result of a rise of 44% in online banking fraud-costing the banks around £33.5million. The machines are similar in size to a pocket calculator. The customer will insert their card, type in their PIN, then a randomly generated number will appear on the screen which the customer must type into the computer before any transaction will be authorised.

If this move is successful, it is estimated that this will be introduced across a broader spectrum of what we purchase on the internet, to include clothes, books, dvds etc. to help combat the £155million internet shopping fraud which took place last year.

This scheme is very similar to the Pin sentry card reader service introduced by Barclays just last month.

It is hoped that because the devices operate independently, this will deter attacks via key logging spyware which enables scammers to obtain access to customers’ usernames and passwords.

It is estimated that up to six million people will have one of these devices before the year is out.