New anti-fraud measures: unintended consequences

AmityNeon

Band7 said:

eskbanker said:
Personally I wouldn't call a single abbreviation "loads and loads of acronyms" but 2FA is two factor authentication, aka (also known as!) strong customer authentication, and 3D Secure is Visa's implementation of this....

3D Secure is a security protocol. Used by VISA, Mastercard and Amex.

The original version of 3-D Secure (where static passwords were permitted) was insufficient in meeting PSD2 directives and lacked support for mobile devices. 3-D Secure 2.0 is compliant with Strong Customer Authentication, which itself is a defined implementation of the concept of 2FA.

3DS 2.0 facilitates more seamless payment experiences for customers by authenticating in the background, and also allows merchants to send more data elements (including contextual data such as the customer's device ID) to the cardholder's bank for better relative risk assessment for each transaction.

Then again, Amazon easily allowed me to use a third-party's card without friction for a transaction comprising items I'd never before purchased, shipped to a completely new address.

born_again

Personally I like the having to logon to your online banking/App to confirm a purchase.  

But as we know many people do not like this sort of thing as they do not do online banking (but make online purchases) or do not have a smart phone for APP banking.

Whatever is done, some people will not be happy. others will carry on as normal, & then there is the ones that get caught in the known fraud ways, no matter how many times they are in the media, pushed out by the banks, or due to regulation such as this. 
Which of course the fraudsters will simply ignore.

masonic

Band7 said:
Somehow Amazon appear to have escaped 3D Secure. For example, I can make payments on amazon.uk with debit cards and credit cards from various UK banks. Though if I want to deposit some money with one of my UK debit cards into one of my own UK savings accounts, I have to approve them with 3D Secure.

I believe Amazon sets up a continuous payment authority and collects payments under that. They do not process payments at the point of sale. Probably a shrewd way of them getting around inconveniencing their customers and preserving the value of their 'one click ordering' patent.

dealyboy

@masonic when I make an Amazon payment with my Chase debit card I get 9 minutes in which to approve it in the Chase app.

masonic

dealyboy said:

@masonic when I make an Amazon payment with my Chase debit card I get 9 minutes in which to approve it in the Chase app.

I've not experienced that. Have made many purchases using Chase card. May have had to authorise when I first set it as my default payment method. I have to approve most other online purchases.

dealyboy

@masonic said:

dealyboy said:

@masonic when I make an Amazon payment with my Chase debit card I get 9 minutes in which to approve it in the Chase app.

I've not experienced that. Have made many purchases using Chase card. May have had to authorise when I first set it as my default payment method. I have to approve most other online purchases.

I suspect it's because it's not the default ... I am a lazy old *** and put all this effort into switching my smartphone on, restarting it when it loses wifi and authorizing the payment just before the time elapses, I've done this umpteen times ... doh!

km1500

Looks like everyone will get reimbursed with the cost spread 50-50 between sending and receiving organisations

https://www.theguardian.com/money/2023/jun/07/uk-banks-to-reimburse-victims-under-new-rules-regulator-confirms

Expotter

km1500 said:

Looks like everyone will get reimbursed with the cost spread 50-50 between sending and receiving organisations

https://www.theguardian.com/money/2023/jun/07/uk-banks-to-reimburse-victims-under-new-rules-regulator-confirms

Also in the Daily Mail today

Banks ordered to refund ALL victims of authorised push payment scams by regulator - but not until next year

https://www.thisismoney.co.uk/money/beatthescammers/article-12168369/Banks-ordered-refund-money-lost-authorised-push-payment-scammers-year.html?ico=mol_desktop_money-newtab&molReferrerUrl=https://www.dailymail.co.uk/money/index.html

It's probably going to make moving money around extremely cumbersome and annoying, especially if you're in the habit of switching regularly seeking better rates.

eskbanker

I'm sure there's an argument that somewhere in between the Daily Mail and the Guardian will be the unspun truth, but for anyone looking for what's happening straight from the horse's mouth, it's at:

https://www.psr.org.uk/news-and-updates/latest-news/news/psr-confirms-new-requirements-for-app-fraud-reimbursement/

https://www.psr.org.uk/media/rxtlt2k4/ps23-3-app-fraud-reimbursement-policy-statement-june-2023.pdf

However, in terms of the issue prompting this thread, i.e. the prospect of more payments being delayed for longer due to increased fraud checks, I can't see any sign of the current proposals actually addressing that, in terms of any legislative changes to facilitate what was highlighted earlier at https://forums.moneysavingexpert.com/discussion/comment/80029641/#Comment_80029641

Expotter

Well, within that PSR release this is also mentioned

• There will be new rules in Faster Payments – the payment system across which the vast majority of APP fraud currently takes place – strengthening Pay.UK’s2 ability to tackle fraud.  

without, as far as I can tell, any further details.

And to be fair, both articles seemed to accurately report the announcement, just with a different tilt.