ECB recommends stronger authentication methods, password access

The time-out plan proposed by the ECB suggests that banks and financial institutions and perhaps retailers, implement a technology that would limit the number of times consumers can use the same log-in details. It would also place a limit on the number of times a customer can attempt to log in before an account is blocked. However, the recommendations are not mandatory, the final decision belongs to the Financial Services Authority.

The ECB wants payments services providers to add multiple security measures and if these are not put in place the customer would be unable to make internet payments. These additional security measures include stronger processes to identify customers and trace them.

Furthermore, the ECB has also suggested that customers sign a dedicated service contract for conducting internet payment, which could lead to financial institutions forcing their customers to use certain security software.

Commenting on the ECB recommendation, the UK Payments Council, which was cited by the online media outlet Computeractive, has stated that it would be up to individual institutions if they decided to draw up contracts independent of general contracts. The Council has also added that the institution is are broadly supportive given that the ECBs recommendations seek to set a common level of best practice.

The increasing problem with internet fraud has determined the ECB to release a number of recommendations for better internet payment security standards.The recommendations are part of a security plan to halt the growing problem of internet fraud attacks, such as account take-over and people becoming victims of phishing websites.

In 2012, members of fraud prevention organisation CIFAS have registered the highest number of fraud attacks, mostly due to identity theft led increasingly by employee fraud, which was up 43 percent.