Shop online? You may have to enter code to fight fraud

You may have to wait for a text message before confirming an online purchase under Government proposals to combat fraud. The message would contain a code that you’d enter online at the checkout stage.

The technique, known as two-step verification, is already used by companies like Google, Facebook and Apple to give you a second layer of protection when you sign in. You can add additional phone numbers in case the first device is lost or stolen.

Home Office ministers said the move could help to prevent thieves from using stolen credit-card details, a crime that affects a million people every year.

Home Secretary Amber Rudd said she was “excited” by the plan. She told the Home Affairs select committee that it “could be a real win in terms of protecting people”.

Another idea being considered is the introduction of credit and debit cards that contain a unique code on the signature strip that changes every hour. This would replace the current three-digit CVV code. Mastercard is working on the early stages of the scheme.

Home Office Permanent Secretary Philip Rutnam said that a new set of security measures need to replace chip and PIN. The Government has been criticised for not doing enough to fight the dramatic rise in online fraud, which costs Britons over £10bn a year.

Earlier this year Sir Amyas Morse, head of the National Audit Office, said the crime had been “overlooked by Government, law enforcement and industry”, and demanded an urgent response.