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06/06/2014

European Central Bank working to reduce online payment fraud

Hoping to reverse the growth of online payment fraud across Europe, the European Central Bank (ECB) has devised new rules for payment service providers. Find out how these stricter regulations will help protect online shoppers from fraud.

Following a rise in online payment fraud across Europe, the ECB has proposed several new regulations that will make it harder for fraudsters to work the system. It has advised payment service providers to use multiple layers of security defences to protect businesses and consumers from payment fraud.

Stricter checks for online shoppers

Among the ECB's recommendations is a more stringent authentication process for online shoppers. It advises that payment service providers limit the number of login attempts a person can make and reduce the period of time that 'one-time passwords' are valid.

When an online shopper is denied access, the ECB asserts that no information should be given about which piece of data was incorrect.

Fraud-prevention: web focus

In 2012, €1 in every €2,635 spent using credit and debit cards was lost to fraud, according to ECB figures. Whilst the last 24 months have seen a decrease in fraud incidents where the card is physically present, there's been a noted rise in fraud happening via the web.

The ECB's new regulations, set to take effect at the end of 2015, are aimed at reversing this trend.

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