Strong customer authentication to combat fraud in e-commerce


You may recently have received a notification from your bank on online purchases and might not know why.

The reason is that, from 1 January, banks, retail establishments and consumers making transactions online must adapt to the mechanisms established by the European regulation on payment services to reinforce the security, transparency and efficiency of these types of payments. These measures are part and parcel of the strong customer authentication that many banks were already adapting to.

This reinforced authentication aims to verify the identity of the payer. Thus, when you shop at an online retail establishment from within the European Union, you will have to identify yourself with at least two elements from the following:

  • something you know, e.g. a password
  • something you have, e.g. a mobile phone
  • something inherently yours, e.g. your fingerprint or facial recognition.

Additionally, if your bank is a member of the new “Payguard” service, it may have informed you that some of your personal details may be shared to be added to a common register for the prevention of fraud in banking transactions, managed by Sociedad Española de Sistemas de Pago SA (Iberpay). This service aims to detect potential unauthorised transactions in your account.

All the information can be found in this link.Abre en ventana nueva.Abre en ventana nueva

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