Card companies to tap technology that changes security codes to fight online fraud
30 Jun 2017
Financial institutions in the UK are looking at a new technology unveiled in France last year wherein the printed three-digit security code on the back of the cards is replaced with a mini screen which displays a random code that changes automatically every hour.
The development comes as the National Audit Office warned in a report that police forces were not doing enough to tackle the growing threat of online fraud.
According to the NAO, the new cards with changing codes could be ''a positive step, as the re-design may help to stop an increase in online card fraud. However, such a plan requires all card providers to participate."
NAO chief Sir Amyas Morse said: "For too long, as a low value but high volume crime, online fraud has been overlooked by government, law enforcement and industry, Press Association reported.
"It is now the most commonly experienced crime in England and Wales and demands an urgent response."
The Home Office's Joint Fraud Taskforce, launched in February 2016, was a positive step "but there is still much work to be done", he said.
"At this stage it is hard to judge that the response to online fraud is proportionate, efficient or effective."
In the year to September 2016 there were 1.9 million estimated instances of cyber fraud, accounting for 16 per cent of all crimes.
Police forces were not doing enough to tackle the growing threat of online fraud, the NAO found.
The NAO said the issue was ''not yet a priority'' for all local police forces and the problem had been overlooked by government, law enforcement and industry.
The NAO report said the overall cost of all forms of fraud in 2016 was £10 billion to individuals and £144 billion to the private sector, arising from almost 2 million cyber-related fraud incidents.
