Farewell to old banking passwords
SOME banks are working on plans to kill off many of the passwords that customers set up years ago, The Mail on Sunday can reveal.
Under new security regulations being introduced over an 18-month period from September 14, banks will be prevented from allowing customers to log in online using only a password and memorable information such as your mother’s maiden name. In practice, that means banks will force all their customers to use codes sent to their handheld card readers, right, or mobile phone to log in. As a result, some are already working on phasing out passwords for good. However, that won’t necessarily make logging in a whole lot simpler than it is today.
Nationwide is ditching the need for ‘memorable data’ during logins. Though it is currently still available, customers logging in this way cannot initiate payments to new people or change personal details on the account. Eventually the option will be completely phased out under the new Strong Customer Authentication rules, the building society told The Mail on Sunday. Instead, customers will log in using their long customer number and a onetime passcode generated by a card reader or sent via text message. At Barclays, customers will have to remember a five-digit PIN to generate the code they need to log in online. At First Direct, customers will require a username, PIN and the answer to a memorable question, such as ‘What was your first school?’ On its website, First Direct – which is part of HSBC and uses largely the same log-in requirements – says: ‘With digital fraud and hacking at a record high, new regulations are coming into effect in mid-September that are designed to help everyone’s accounts be even safer. This means that very soon, you won’t be able to log in to online or mobile banking using just your online banking password and answer to your memorable question. Instead, you’ll need to use a Secure Key.’
The good news is that customers will need to remember less information if they set up thumbprint or facial recognition on their mobile phone banking apps.