The problem means fraudsters have been able to take control of online accounts and snatch thousands of pounds through stolen mobile phones.
An investigation by the BBC Radio 4’s You and Yours programme proved it is possible to hack into an account using a stolen mobile phone. The investigation was launched following consumer complaints that money was disappearing from accounts without any logical explanation.
People who asked their bank for help were often batted away and told they must have allowed their bank details, account numbers and internet log-in passwords to be stolen.
In fact, researchers were able to show it is possible to raid someone else’s bank account without having any of the log-in details and passwords.
Concerns focus on the mobile banking services run by NatWest, however there are reports of similar problems with other banks.
NatWest runs a system where it will send a unique authorisation code to a customer’s mobile phone by text when requested. These codes let the user set up new payees on an existing account and transfer money. Problems can occur when a handset is stolen or where a criminal is able to hijack the mobile phone number of a target.
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