Strengthened identity checks for UK online shoppers

From yesterday (14 March 2022) UK consumers are going to face stronger identity checks when shopping online.

The new Strong Customer Authentication (SCA) regulations aim to tackle the increased level of fraudulent activity, as demonstrated by the £376 million lost to online fraud throughout 2020, as revealed by Barclaycard Payments’ data.

According to the British Retail Consortium (BRC), customers will be required to go through two-factor authentication checks to complete their online payments.

These will consist of factors such as:

·        Fingerprint or facial ID

·        Entering a password or passcode

·        Verification through a mobile phone

·        Signing into an online banking app

Many retailers will already be prepared for these changes, with some opting to implement the measures early.

Tom Ironside, Director of Business and Regulation at the BRC, commented on the checks:

“The BRC and our members have worked with suppliers to ensure multiple fraud checks are performed behind the scenes and any additional friction is kept to a minimum. Customers should be reassured that buying online has never been safer.”

According to research from Barclaycard, throughout February over 1.2 million online transactions were declined as a result of the enforced measures.

From this, it was also found that 37 per cent of shoppers stated that they would be less likely to shop with someone in the future if their payment was rejected and did not provide a reason.

Therefore, it is important for retail businesses, that operate online, to incorporate measures to inform customers of what to expect from the new SCA rules and to be on hand to provide support.

However, it is important to note that not all online payments will have extra security measures enforced.

For “low-risk” purchases, such as repeat subscriptions and low-cost purchases are unlikely to require authentication at this stage.

The new identity check measures are likely to be prompted by high value purchases as well as purchases made on an unfamiliar device.

If you require support with related matters, contact our experts today.