We’re Ready for Secure Customer Authentication – Are You?

Secure Customer Authentication - Speedy Reg
Secure Customer Authentication – Speedy Reg

From September 14th 2019, (however the FCA have extended this date to March 2021) there will be some changes in the law as to how your online payments will be processed. An extra level of security will be added when you make a transaction with extra security checks in place. While at first this may seem like an added headache, the process will be simple as long as you’re ready for it, more on how to do that later.

Lowering the risks of fraud

Financial fraud is a huge problem, so these new measures will go a long way to keeping your money safe and ensuring you don’t fall foul of fraudsters. The new system adds an extra level of security to all your online purchases, protecting your hard earned cash and also your personal data.

Make sure your providers have your latest mobile number

So, when you make a payment online, at the moment the payment simply goes straight through, or you may be asked for a password that you’ve previously set with your card provider. The new system will involve a special code being sent to your mobile phone when you check out at an online retailer. This code will be sent via text message and you’ll have a short time to input that code online. Only once that code that has been entered will your payment go through. So that means, if someone has stolen or cloned your card, unless they’ve also stolen your mobile phone, they won’t be able to continue with a fraudulent payment.

However, if your bank or credit card company doesn’t have a mobile phone on record for you,  or the number is out of date and you’ve since acquired a new one, your legitimate payments won’t go through either. So now is the time to check your records with all your card providers and ensure they have your correct details. You don’t want to find your perfect personalised number plate then discover you’re unable to pay for it. You could find someone else snaps up your dream plate before you’ve managed to sort it out!

You can opt for email codes instead

This could be a worry if you live in an area with bad mobile reception, or you don’t even have a mobile phone. There’s no need to worry though as card issuers will also be able to send you your verification code by email. You just need to let them know that this is your preferred method of code delivery as text message will be the default.

The Financial Conduct Author (FCA) has issued a statement saying that firms must demonstrate that they have taken the necessary steps to comply with the UK Finance co-ordinated plan to deliver SCA by 14 March 2021. After 14 March 2021, failure to comply with the requirements for SCA will be subject to full FCA supervisory and enforcement action as appropriate.


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