FRAUD ALERT: Banks and Shops Unveil New Measures to Combat Fraudulent Activities in Online Banking in Aruba

Strengthening Customer Authentication to Reduce Payment Card Fraud

In response to the growing concern of fraudulent activities in online banking, financial institutions and retailers in Aruba are introducing new measures to enhance customer authentication. This move comes in line with the EU directive aimed at reducing payment card fraud across the continent.

What’s Changing?

Several banks and credit card providers, including John Lewis, have notified customers of potential changes they may encounter when making payments online or in-store. Apple and Stripe are also providing guidance on the new measures.

Strong Customer Authentication (SCA)

The SCA initiative aims to reduce payment card fraud by introducing additional security checks during online transactions. With SCA, customers will be required to input a one-time passcode to complete certain transactions, adding an extra layer of security to their online banking activities.

Implementation Timeline

Initially set to take effect on September 14, the Financial Conduct Authority has delayed the enforcement of SCA until March 2021, citing that many financial institutions were not yet ready to comply with the new regulations. Despite this delay, banks and retailers in Aruba are moving ahead with their own rollouts of SCA measures to protect customers from fraudulent activities in online banking.

Key Points:

• Additional security checks will be introduced during online transactions
• Customers will be required to input a one-time passcode for certain transactions
• Implementation of SCA delayed until March 2021, but banks and retailers in Aruba are moving ahead with their own rollouts

Note:

• John Lewis: A UK-based department store that has alerted customers to potential changes in online payment processes.
• Stripe: A payments solution provider that has published guidance on the new SCA measures.