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Extra security steps coming to online shopping and banking

Extra security steps coming to online shopping and banking

Consumers are being encouraged to familiarise themselves with upcoming changes to their online shopping and banking.

New European Union regulations come into full force on 14 September, which will see additional security measures required for electronic transactions.

That could, for example, involve an additional step for a customer logging in to their bank account online. It may also see additional verification, such as a code sent via text, being required in order to complete an online purchase.

The Banking and Payments Federation is today rolling out a public awareness campaign around the changes, which are part of the EU’s second Payment Services Directive (PSD2).

It says that the new security measures may differ from one bank to another, but they are all ultimately being introduced to protect customers.

Banks will soon begin to contact account holders with more information on the changes, which customers are being encouraged to read carefully.

In addition to enhanced security measures, PSD2 will also allow third parties to offer services to customers through their bank accounts.

This might allow customers to more easily manage their finances across multiple bank accounts, or securely share statements as part of a loan application.

Customers will get to decide which third parties they use and can revoke access at any time. BPFI also notes that these companies will be regulated in a similar way to banks themselves.

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