Nationwide suggests online checks stopping extra 2,000 fraud cases a month

Nationwide has reported it is protecting its members from an additional 2,000 cases of online card fraud a month as a result of new payment checks at online checkouts.

Despite the fact that some transactions now take a little longer, new research from the building society has revealed that more than two thirds (68%) of people are happy for a slight delay if it is more secure.

Nearly all online card fraud takes place using compromised data, such as that obtained by data leaks, rather than fraudsters stealing the physical card and using this to shop online.

Despite this, however, Nationwide’s study of 2,000 UK adults indicated that people still worry more about losing their card and it being used online (59%), compared to those that worry about their details being compromised and used this way (41%).

While Strong Customer Authentication (SCA) was first introduced by debit and credit card providers back in September 2019 across a small proportion of payments, it was only in March that the service was rolled out across all online purchases. SCA requires online shoppers to authenticate it is them making the purchase by responding to a push notification sent to their mobile banking app or by inputting a one-time passcode sent to their mobile phone.

Nationwide’s data also revealed that 70% of its members complete the SCA check using their mobile banking app, while 21% authenticate using a one-time passcode sent via a text message.

Furthermore, the research suggested that 42% of say that SCA makes them feel safer when shopping online, while more than a quarter (27%) said the extra security it provides meant they are more likely to shop online.

“The introduction of new SCA measures adds just a few extra seconds to the check-out process for higher risk transactions, but they are vital for retailers and banks and building societies to check it is the card owner making the purchase,” commented Nationwide chief product owner for digital payments, Matt Cox.

“It’s been just two months since the new regulations were fully rolled out, but already we are seeing around 2,000 fewer cases a month of online card fraud and this is likely being replicated across the industry.

“While this is good news, history has shown us that when we interrupt fraudsters, they will often look for other, easier ways to trick people out of their hard-earned money. This means we must always remain vigilant as we keep our members’ money safe.”

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