Brits hit by new rules requiring extra security checks for online purchases
New rules requiring Brits to undergo extra security checks when making online purchases could deliver a blow to businesses fresh data reveals.
From today, online shoppers will be required to verify themselves with two-factor authentication under rules designed to clampdown on the estimated £376m of online fraud committed in the UK each year.
Around three in ten Brits said that they have given up on online purchases as a result of security checks taking too long according to data from Barclays, which processes £1 out of every £3 spent online.
“Today we see the biggest change to consumer payments since Chip & PIN was rolled out more than 16 years ago,” commented Rob Cameron, chief executive of Barclaycard Payments.
“However, for the new rules to be fully effective, it’s important shoppers understand what they will be asked to do at the checkout, and why,” he continued.
Barclays revealed that 56 per cent of UK consumers have already used Strong Customer Authentication verification when shopping online. While the majority of consumers agreed that it makes online shopping safer, 37 per cent said they would be unlikely to shop with a merchant in future if their payment gets rejected without explanation.
Meanwhile, 28 per cent of those customers reported abandoning purchases because of the time taken to complete two factor authentication.
“Shoppers should be prepared for some purchases to take a little longer than usual to go through, but the extra seconds at the checkout are a small price to pay for the added security that the new rules will provide,” Cameron said.
The UK’s financial watchdog called for tighter regulation of online purchases in order to crackdown on cyber crime and fraud. As transactions under £25 will not be subject to the additional checks, many shoppers are expected to find the rule changes imperceptible.
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